CRUDE OIL Sell MCX CRUDE OIL (OCT) below 4950 SL 5060 TGT 4800
- US commercial crude oil inventories rose by 8.5 mb to 367.6 mb on resumed production in Gulf of Mexico after Hurricane Isaaac while gasoline stockpiles declined by 1.4 mb to 196.3 mb in the week ended Sept 14.
- The OPEC and the IEA executive director stated that the oil market is well supplied while OPEC spare capacity is at comfortable levels to balance the supply-demand.
- U.S. fuel demand in August dropped to the lowest level for the month in 15 years according to the American Petroleum Institute with total deliveries dropped 4.3% to 18.6 mb\day in August 2012 from a year earlier.
- Crude oil futures at NYMEX are trading near $93 and we expect oil prices to trade downside with re-sistance at $95 and support at $90 and $87. We recommend selling in oil prices on weak fundamen-tals on weak demand concerns with prices breaching support at $94. At MCX, crude oil (Oct) has im-portant support at INR 4790 and resistance lies at INR 5060
