Crude Oil Morning Update:
Isaac moving slowly along the coast of Southeast Louisiana and producing a dangerous storm surge. Flooding from rainfall is also expected. Thus, shut down in oil production in Gulf region may support the upside trend ahead of US economic releases and inventory data due tonight. However, talk over releasing reserves by IEA might limit the gain in oil price movement.
Expected range for the day is 5426-5270
Crude Oil Noon Update:
Crude oil futures prices are trading in a sluggish pattern below Rs.5340/bbl with loss of more than Ras.27 in MCX platform. Concern of supply tightening in Gulf of Mexico is supporting oil prices in one side and on the other side, speculation of releasing reserve to meet demand is adding pressure on prices. Thus, oil prices are not able to take a particular direction.
Ahead of the crucial day today with inventory report, Beige book release and US GDP data we may expect oil prices to trade in a positive trend though volatility can be seen in US session. Overall, we may expect prices to trade in a range bound in the European session also.
Inventories Data Expectation :
|Crude Oil Inventories @ 08:00 PM||Expected : -1.480M||Previous: -5.412M|
|Gasoline Inventories@ 08:00 PM||Expected :-1.420M||Previous: -0.962M|
Technical UPDATE @ 05:00 PM
Crude oil Sep MCX : Prices are witnessing a strong support near 5319 levels. A convincing break below the same it is likely to extend its drop until 5290 levels. Key resistance levels to watch for intraday is at 5358/5375 levels. CMP 5335
MCX Crude Oil – Sept’12
- Supports : 5290 – 5322
- Resistance 5358 5375
- Expected Trading range 5310-5380