Commodity Trading Tips for Crude Oil by KediaCommodity

Crude-OilCrude Oil rallied by +1.27% after Israel attacked the Gaza Strip, raising concern Middle East unrest will disrupt supplies. Overall pressure should mount as official data indicating retail sales in the US fell more than expected in October. Traders remained fixated on concerns over the euro zone’s ongoing debt crisis and the fiscal outlook in the US Prices claimed despite core retail sales, which exclude automobile sales, were flat last month. Market had expected core retail sales to increase 0.2% in October, after rising by an upwardly revised 1.2% in September. Rising retail sales over time correlate with stronger economic growth, while weaker sales signal a declining economy. A separate report showed that PPI in the US fell unexpectedly in October, while core prices also dipped. Meanwhile, concerns over Greece’s fiscal woes remained after a meeting of euro zone FM earlier in the week ended without any final decision on whether to release an urgently needed EUR31.5 billion bailout installment for the debt-strapped country. Investors also remained concerned over the looming “fiscal cliff” in the US, approximately $600 billion in automatic tax hikes and spending cuts due to come into effect on January 1. There are fears the US economy will fall back into a recession, unless a divided Congress and the White House can work out a compromise before then. Now technically market is getting support at 4687 and below could see a test of 4633 level, and resistance is now likely to be seen at 4774, a move above could see prices testing 4807.

Trading Ideas:

Crude trading range for the day is 4633-4807.

Crude gains as Israeli air strikes in Gaza and car bombs in Iraq reinforced concerns about the geopolitical risks to supply.

Oil traders were now looking ahead to fresh weekly information as stockpiles rose by 1.9mbls to the highest level since July

Today crude oil inventories: EXP: 2.5M PREV: 1.8M. Actual is at 9.30PM