Crude gains after data showing U.S. jobless claims rose last week and housing starts fell in July strengthened the euro and weakened the dollar, helping support dollar-denominated oil prices. A fall in production in the North Sea during September due to maintenance has also tightened supply in Europe and helped push up the price of light, sweet crudes for immediate delivery. Global crude oil benchmark Brent has risen more than a third in less than two months on escalating worries about a conflict over Iran's nuclear programme and as investors hope for more stimulus measures from central banks, which would boost commodities. Data on Wednesday showing a steep drop in U.S. stocks exacerbated global supply worries. Added to that is the ongoing geopolitical issue in the Middle East with recent comments suggesting a conflict. U.S. crude stockpiles fell more than expected last week, slipping 3.7 million barrels to 366.16 million barrels, the Energy Information Administration reported, despite a modest rise in crude imports as plant utilization remained high. Analysts had forecast a drop of 1.7 million barrels. Crude stocks may have also declined in part due to the fall in output because of hurricanes in the United States. Now technically market is trading in the range as RSI for 18days is currently indicating 67.73, where as 50DMA is at 4915.28 and crude is trading above the same and getting support at 5242 and below could see a test of 5188 level, And resistance is now likely to be seen at 5328, a move above could see prices testing 5360.
Trading Ideas:
Crude trading range for the day is 5188-5360.
Crude gains on worries over possible disruptions to supply from the Middle East and a drop in U.S. oil inventories.
A fall in production in North Sea during September due to maintenance has also tightened supply in Europe.
Crude stocks have also declined in part due to the fall in output because of hurricanes in the US.
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