Crude oil prices down on Wednesday in Asian
markets on concerns that inventories may increase again in US at a time when
refiners normally ramp up output of heating oil.
On Nymex, crude oil futures for delivery in Jan. traded at USD 93.53 a barrel, prospecting for a 10th straight weekly increase in U.S. crude supplies and growing sentiment that Iran could sometime next year escape economic sanctions that have crippled oil exports.
Investors avoiding crude ahead of the release of weekly supply data on Wednesday.
We are expecting on Wednesday report from the EIA to show that oil stockpiles increased by 606.000 barrels in the week ended Nov. 22, which would be the tenth straight weekly increase.
Late Tuesday, the American Petroleum Institute said crude inventories rose by 6.9 million barrels last week.
Crude oil December contract on mcx 3 rs. minor down to settle at 5896.
Today support would be 5840 and below that a retest to 5750 and more down side cant be ruled out. Resistance is now seen near 5980 and any sustained move above that level would bring 6050 and then 6100 zones.
Trading range for the day is expected among the key support at 5650 and resistance at 6180.
Â· Today selling crude below 5840 with stop loss above 5900 for targeting 5800-5760 and more down side might be appropriate.
Â· Buying above 5980 with stop loss below 5940 for targeting 6020-6070 and more upside.
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