Crude Oil Prices Likely To Under Pressure, Resistance At 6367
CommodityOnline | Jul 02, 2014 08:01AM ET
The U.S. and China are the world’s two largest oil consuming nations and manufacturing numbers are used as indicators for fuel demand growth.
MUMBAI: Crudeoil settled down -0.57% at 6301 fell for a third consecutive session and price reached its lowest level since June 11, which was the day before crude prices had spiked upon concerns about possible interruptions to Iraqi crude supply. Crude oil prices posted losses after having risen for two consecutive weeks on concerns that insurgency in northern Iraq might spread across the country and threaten oil production in southern Iraq. From the data side the ISM said its index of PMI fell to 55.3 last month from a reading of 55.4 in May.
Meanwhile, in China, government data released earlier showed that China’s official manufacturing PMI rose to a six-month high of 51.0 in June, in line with expectations and up from 50.8 in May. A separate report showed that China’s final HSBC PMI came in at 50.7, weaker than a preliminary reading of 50.8 but higher than May's 49.4 figure. The U.S. and China are the world’s two largest oil consuming nations and manufacturing numbers are used as indicators for fuel demand growth. Market players awaited key U.S. Weekly supply data to gauge the strength of oil demand from the world’s largest consumer.
Crude oil prices have been under pressure in recent sessions amid indications Iraqi oil exports from the southern part of the country remained insulated from the sectarian violence that has swept the north in recent weeks. Iraq produced approximately 3 million barrels a day of oil last month, making it OPEC’s second-biggest oil producer behind Saudi Arabia. Now Crudeoil is getting support at 6261 and below same could see a test of 6222 level, and resistance is now likely to be seen at 6367, a move above could see prices testing 6434.
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