US DOE Crude stocks and Commodity Market Tips

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US DOE Crude stocks and Commodity Market Tips
Crude commodity market Trading overall bias stays
bearish as supply side problems globally and cues
over weaker set of inventory data from the US
continues to haunt the broader trend for the
commodity. However, we believe, markets face some
risks as the commodity might give good pullback
before sliding further. WTI has slumped around
10-12 in October, whereas other major
developments in the likes of some cyclones
formation around the gulf region in the US
meanwhile Iraq and other countries calling for
cut in OPEC output might support the commodity
against fresh slump from these levels. US faced
the Hurricane Gonzalo last week, wherein the same
moved towards Bermuda on Friday as a Category 4
storm with almost nil landfalls in the US.
However, in case we get some changes in weather
pattern in coming days it could act positively
for Crude as oil refineries in Gulf coast make
for around 40 of total refinery capacity
and also the region is house to some
decent oil exploration capacity. Secondly, we
are having WTI November contract expiry on
Tuesday which is surely seen producing some
volatility in the commodity as also seen
in the case with Brent on Thursday, this
week. In fact the technical analysis is
suggesting oil may rebound as the same has
reached to an oversold phase. Also oil related
equity stocks have plunged heavily globally
so any interest for buying might also help
the underlying to rebound. We recommend
buying oil in intraday on small dips.Crude
oil prices in the international and domestic
markets recorded huge fall in the current
week as well, with major oil benchmarks
i.e. the Brt and the WTI moving further
deep into bear market territory as supply
side pressure continued whereas economic cues
mainly in EU and China still remained a
concern Global Market View Let us begin the
week with a fresh note. The markets are mostly
calm this morning. From the global currency front
to equities and commodities most of them are
trading steady. We have no major economic data
today except a few like Germany PPI
number and the Euro-zone Current account
balance with no data from the US. There are no
major changes seen in NG as US EIA last week said
NG stocks rose by 94 BCF in the week ending Oct
10, higher than market expectations of a
drop around 91 BCF. Total working gas
storage moved to 3.299 Trln CF with the
deficit reducing down to the just 10 as
compared to last 5 year
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average. Weather continues to take a big tool
over prices. As per NatGasweather, cool air will
sweep through Midwest and Northeast in the coming
week driving moderate heating demand however rest
of the US will be relatively comfortable with
limited demand for heating or cooling for most
part of the week. Overall we hold selling bias
in the commodity on pullbacks Commodity Market
Tips Sell Silver Mcx Dec below 38450 SL 38680 Tgt
37950 Buy Crude Mcx Nov above 5060 SL 5020 Tgt
5160