Crude Trading Patterns

Crude trading range for the day is 4935-5051. Technically market is getting support at 4956 and below could see a test of 4935 level, And resistance is likely to be seen at 5014, a move above could see prices testing 5051. Oil prices continue to be supported by worries about supply from sanctions hit Iran. Iran and the West have been at odds over Tehran's nuclear ambitions resulting in crippling sanctions that have dented the flow of Iranian oil into international markets.

Crude oil traded in the tight range as investors prefer to wait and see if the Fed and the ECB will hint at a need or not to stimulate their respective economies. Both monetary policy authorities will meet this week, and a decision to intervene from the Fed especially could send oil gaining.

Crude oil futures traded little down below $90 pressured by stronger dollar and weak equity indices on EU economic worries. Natural gas futures rallied more than 5% on warmer temperatures expectations. The speculation over the meeting between US FED, ECB and Bank of England officials this week may keep oil prices volatile. The fears of spreading crisis from Syria to other MENA regions may keep oil prices up with support at $87 and resistance at $92. We expect oil prices to trade sideways to up with resistance at 5040 and support at 4950.

Nymex Crude oil prices declined around 0.4 percent yesterday taking cues from expectations that Euro Zone debt crisis will worsen further and curb demand for the fuel coupled with strength in the DX. However, positive global market sentiments along with tensions in Middle East restricted sharp fall in crude oil prices.

Crude oil prices touched a low of $89.33/bbl and closed at $89.80/bbl in the yesterday’s trading session. On the MCX, prices declined by 0.5 percent and closed at Rs.4,978/bbl after touching a low of Rs.89.78/bbl on Monday.

Natural gas trading patterns and ideas for the July 31

Natural gas trading range for the day is 165.5-184.3. Market is looking to take support at 171.6, a break below could see a test of 165.5 and resistance is likely to be seen at 181, a move above could see prices testing 184.3. In yesterday's trading session Natural gas has touched the low of 168.8 after opening at 168.8, and finally settled at 177.7.

Natural gas yesterday traded with the positive node and settled 5.18% up at 177.70 exploding to a seven-month high as forecasts for higher than average temperatures boosted the outlook for gas-powered electricity consumption. Sparking the gas rally, warmer than normal temperatures increase the need for gas fired electricity to power air conditioning, boosting demand for natural gas.

Natural gas accounts for about a quarter of US electricity generation. A bout of hot weather across much of the US over the last several weeks has helped ease the oversupply of Natural gas as power generators burned more of the fuel to meet demand. Total Natural gas inventories are now approximately 15% above the five-year average for this week.