U.S. crude oil futures ended more than 2 percent lower yesterday, as a report by a private business research group that consumer confidence fell unexpectedly in June sparked renewed worries about oil demand.
According to the report, The Conference Board's U.S. consumer confidence index fell in June, to 49.3, from a downwardly revised 54.8 in May. Economists polled by Reuters had forecast a reading of 55.0.
The Conference Board's report weighed on Wall Street but boosted the dollar against the euro on renewed risk aversion, both developments combined to knock down NYMEX August crude futures from an early high above $73.
But at the same time, attacks by Nigerian militants in recent days have cut oil output from Royal Dutch Shell operated facilities to around 140,000 barrels per day, limited the falling.
On Monday, U.S. crude oil futures rose more than 3 percent, jumping above $71 a barrel as attacks on Nigerian oil facilities and optimism about economic recovery that helped boost equities lifted crude oil futures. RBOB gasoline and heating oil futures also surged as the front-month July contracts approach expiration on Tuesday.
Weekly outlook (DWTI: July)
Supports are $ 67.10, $65.30 and $64. Resistances are $72.50, $73.80 and $75.
DWTI (July) traded in the range $73.08-68.95 and closed at $69.89
TECHNICAL OUTLOOK (Intra-day)
DGCX Crude (July) - Bullish above $ 69.80 Bearish below $69.00 Courtesy: JRG Wealth Management
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