Crude oil gains second on manufacturing data

Crude oil prices gained for the second day on Tuesday as latest manufacturing data release indicated that fuel demand could rise in the coming months. But prices inched down to close around $79/bbl levels following an industry report in the US that showed a rise in fuel inventories. Losses in crude oil were kept under check as gold prices held near record highs and as markets awaited separate US government inventory data on Wednesday.

The American Petroleum Institute (API) reported on Tuesday that US gasoline stocks rose by 501,000 barrels last week against forecasts of 300,000 barrels rise. Distillate supplied rose 1.8 million barrels versus predictions for a 1 million barrel decline. Commercial crude oil inventories fell 3.3 million barrels as imports declined in the weed to 30th October versus expectations of a 1.4 million barrel rise.

Nymex October Natural Gas futures ended in the green on Tuesday, but closed below the $5.00/mmbtu mark.

The dollar index is expected to trade with a positive bias and the upside in crude oil prices may be limited on the back of that. Today’s US Energy Department inventory report is expected to show a rise in US crude oil inventories of 1.4 million barrels in the last week. Gasoline stocks are expected to fall 100,000 barrels while distillates, which include diesel and heating oil are topped to decline by one million barrels.

Till the inventory data release, oil prices could trade with a negative bias. But prices could recover as gold prices are rising as overall sentiments for the commodities space is on a high.

Today, we could witness sideways move in crude oil prices with support for NYMEX Dec Crude Oil is seen at $77.45/$75.35 level & resistance at $80.60/$81.85 levels.

Natural gas price will take cues from oil prices. Natural gas MCX November contract has major support at 226 & major resistance at 238 levels.

Courtesy: Angel Commodities

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