DGCX Crude Outlook 2nd Feb, 09

U.S. crude oil futures settled higher on Friday as anxiety over slumping demand offset data showing the U.S. economy shrank less than feared in the fourth quarter and concerns about a possible strike by refinery and pipeline workers.

The U.S. Commerce Department said that real GDP was down an annual rate of 3.8% in the fourth quarter, the worst quarter in 26 years, but not as bad as expected. From a year ago, real GDP was down 0.2% and nominal GDP was up 1.7%.

On weekly basis ,U.S. crude futures ended weak last week , as gloomy economic data kept concerns about demand in focus even as the possibility of a refinery worker strike in the United States . Large inventory data from US also added pressure in to the crude oil prices.

Click here to trade in global commodity markets.

Mail us for clarifications

According to the data from U.S. Census Bureau , new home sales were at an annual rate of 331,000 units in December, down 14.7% from November's pace and weaker than expected. For all of 2008, there were 482,000 new homes sold, down 38% from 2007. The U.S. Labour Department said that jobless claims were up 3,000 last week to 588,000, more than expected.

48.40 And 44.30 is the trading range, breaking either side may clear the direction. Resistances are $50.50, 52.40, and 54.30. Supports are at $41.60, $39.30, $ 37.00

DWTI (MAR) traded in the range $43.35 - $41.20and closed at $41.68

TECHNICAL OUTLOOK (Intra-day)

DGCX Crude (MAR) - Bullish above $41.90bearish below $41.50

Courtesy: JRG Wealth Management