Crude oil jumped on hopes Greece and Italy could resolve their debt crises and minimize the chances of a further slowdown in global economic growth.
Italy, with debts amounting to 120 percent of gross domestic product, has the biggest government bond market in the euro zone. An Italian financial collapse would pose a huge risk to markets but might bring an administration that would be better able to handle the debt crisis. Italian Prime Minister Silvio Berlusconi on Monday denied reports he was about to resign.
Low fuel inventories in the world's top oil consumer, the United States, amid signs of an earlier-than-usual onset of winter may prompt refiners to ramp up output. That may further squeeze an already tight crude market coping with disruption in supplies from Libya and the North Sea. U.S. demand for Heating Oil this week will average 18.2 percent below normal, while heating demand for Natural Gas will average 12.3 percent below normal, the National Weather Service forecast.
Overall, U.S. heating demand this week would be 11.7 percent below normal, the NWS said. Now technically market is trading in the range as RSI for 18days is currently indicating 65.84, where as 50DMA is at 4271.56 and crude is trading above the same and getting support at 4628 and below could see a test of 4592 level, And resistance is now likely to be seen at 4693, a move above could see prices testing 4722.
Trading Ideas:
Crude trading range is 4592-4722.
Crude oil jumped on hopes Greece and Italy could resolve their debt crises and minimize further slowdown in economic growth
Investor?s eye Italy, EU attempts to tackle debt woes
In Italy Prime Minister Silvio Berlusconi defied pressure to resign after Italian government bond yields rose
Courtesy: Kedia Commodities
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