US crude oil prices move higher marginally

Fundamental & Technical Outlook on Commodities - Mr. Vivek Gupta – Director Research - CapitalVia Global Research Limited

US Crude oil prices moved higher marginally after the previous fall over higher inventories and surprise action by US. For the week, the contract has lost 4.3 percent, after the U.S. government surprised markets on Wednesday by announcing a test release from its strategic petroleum reserve. Poor Chinese industrial production data yesterday impacted Crude oil prices as world's one of the largest Crude consumer is seen moving down. India reduced its Iranian oil imports resulting in fall in Oil imports by 36% in Feb against January. We expect Crude Oil prices to move in range for the week, tensions in Russia can also support the prices over fear of supply glitch.

For the coming week 5700/5500 will act as major supports levels whereas 6130/6320 will act as major resistance in MCX Crude oil April futures. For the next week, trader can use sell on higher level strategy, if MCX Crude April future sustain below 5982 levels then it could test the levels 5850/5700.

Source : Equity Bulls

Keywords