Nymex Crude oil Outlook: Karvy Commtrade Ltd.
Published on Thursday, March 11th, 2010 at 7:00 PMAuthor: onlinecommoditycalls (1958 Articles)
Crude oil April contracts on NYMEX closed yesterday at $82.09 with a gain of 0.74 percent.
Yesterday economic data from Germany came negative for oil prices. DOE report showed oil inventories rising by 1.432 million barrels while gasoline and distillate inventories declined by 2.959 million and 2.217 million barrels respectively.
While the decline in inventories supported prices refinery utilization fell drastically and showed that the demand for petroleum products is limited in the market.
Overall the report was mixed for prices. US data showing a drop in wholesale inventories also came positive for prices. Prices also rose after data showed Chinese oil demand continued to grow in February.
Oil imports by china totaled 4.85 million barrels up 20 percent from January. Prices are trading slightly lower today after OPEC compliance to production targets fell to 53 percent in February there by indicating more supplies coming into the market.
US monthly budget statement for February came slightly below market expectations and supported prices from declining further today.
OUTLOOK:
US economic data in the form of jobless claims is expected to fall slightly while continuing claims are expected to remain unchanged. The slight drop in initial jobless claims is expected to be positive for oil prices. However a continuing deficit in trade balance will weigh on US economic outlook and on oil prices as well.
TECHNICAL RECOMMENDATIONS
March futures crude oil prices were seen trading extremely volatile on yesterdays trading session and ended at 3711 levels. The closing pattern does not render any signal to price trend. We expect crude oil to remain sideways on today’s trading session.
Courtesy: Karvy Commtrade Ltd.
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