Crude oil once again dropped by -1.36% to settled at 4861 as data indicated that US supplies advanced more than expected and weaker than forecast US economic numbers.
Crude prices fell from their highs on US supply data stating Crude Oil inventories climbed by 4.2mbls in the week ended Jan 27, beating expectations for a 3.0mbl increase.
Total crude oil inventories stood at 338.9mbls as of last week, booking the highest level since the week ended Nov 4.
Adding to the bearish oil environment, the ISM’s US mfg index climbed to 54.1 in January from 53.1 in Dec. 50 is the dividing line between economic growth and contraction.
Payroll processing firm, ADP reported that non farm private payrolls climbed to a seasonally adjusted 170k in Jan, missing expectations for an increase of 190k.
Strong mfg data from the euro zone and China worked to support oil prices earlier in the session. Oil traders continue to watch Iranian and Sudanese tensions very closely due to supply disruption concerns.
Now technically market is trading in the range as RSI for 18days is currently indicating 31.69, where as 50DMA is at 5187.86 and crude is trading below the same and getting support at 4834 and below could see a test of 4806 level, And resistance is now likely to be seen at 4910, a move above could see prices testing 4958.
Trading Ideas:
Crude trading range is 4806-4958.
Crude oil dropped as data indicated that supplies advanced more than expected and weaker than forecast numbers.
Oil traders continue to watch Iranian and Sudanese tensions very closely due to supply disruption concerns.
EIA’s weekly Crude Oil report showed U.S. commercial crude oil inventories rose 4.20 million barrels
Courtesy: Kedia Commodities
Looking for a trading partner?visit commodityonline.com/franchisee
