Capacity Utilization and Commodity Trading Tips

1
Capacity Utilization and Commodity Trading Tips
Crude oil commodity trading during the
week, global oil prices came under huge
pressure tracking developments from the IEA
(International Energy Agency) which in its report
said global consumption for oil is seen
increasing by 1.2 MBPD to 93.8 MBPD in 2015,
lower by 165,000 BPD as compared to its own
forecast in the previous month. Short-term
markets sentiment was further dented by comments
that Q2, 2014 consumption for the commodity
fell to a near a 2 and ½ year low
amidst weakening demand from worlds two largest
consumers EU and China. Subdued demand from these
regions forced the agency to trim its demand
forecast for the current and next year as
well. As per the latest developments in the
fresh week, we are seeing good fall in Asian
equities along with the industrial commodities
which is hurting crude oil prices as well. We saw
highly disappointing Chinese Industrial
production data during the weekend wherein
August IP which grew by just 6.9percentage.
WTI oil prices have declined over a per cent
today with Chinese data along with dragging
concerns over ease in global oil supply
taking a toll on oil prices. Last week,
already we have seen a fall by around
4percentage in Brent crude and probably some of
its effect too could be getting replicated into
the US Crude as the WTI in electronic
session is lower to by 1.2percentage while
today Brent lost around 0.6percentage to trade
near two year low. We may see good gap-down
opening in Indian crude today, note that Rupee
has depreciated in the opening and would be a
critical factor to watch during the day. We
recommend selling from Global Market View Let
us begin the week with a little sanguinity to
have a good day ahead. We have already seen so
much of movement in the early morning. No doubt,
the markets are jittery as well as in red. The
Asian markets are trading in negative after
the Chinese data released over the weekend
showed that industrial production in the country
rose at an annualized rate of 6.9percentage in
August, missing estimates for a gain of
8.8percentage and sharply lower from an
increase of 9percentage a month earlier. The
consequences are gold and silver fell down
early morning while they have revived from the
lows and currently trading at 1234 and 18.64.
Today would be the day when investors might be
little baffled with the trading recommendation
though the overall view remains down. Oil prices
have declined over a percent and the base metals
too have declined with an average loss of more
than half per cent.
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Economic data India Trade Balance and Exports
/Imports, US Manufacturing Activity in the Empire
State and Industrial Production higher levels in
oil for the day. However, we need to be little
cautious about volatility may remain high in US
session. Natural gas commodity trading was
advancing in first half last week on anticipation
of cooling demand in the US though the commodity
plunged in second half following warmer weather
forecasts in near term and also appended by
disappointing inventory report. US EIA showed, NG
stocks jumped by 92 BCF higher than expand prior
figures. Currently cooler weather has receded and
is likely to be taken over by normal
temperatures in East while moderately hot
climate in West and North-West region.
Above weather related cues may keep NG
volatile in a small range. With broader
view continuing to be negative side, we
keep up selling bias with small possibility
and profit potential for the day. Locally,
Rupee movement would be watched. Commodity
Trading Tips Sell Silver mcx Dec Below at 41650
SL 41830 Tgt 41300 Sell Crude mcx oil Sep below
at 5630 SL 5665 TP 5560