Crude Oil prices were moderately moved early trade on Tuesday after gaining for fifth straight day yesterday in the US. As per markets update inventory for Distillate that includes heating oil and diesel, probably fell by over 2 million barrels last week and added to optimism for prices. However we feel gradually the effect of winter would start diminishing and might lead to lower demand in coming weeks. Today, WTI prices also got support from expectations of a extended slippage in crude stocks at Cushing i.e. the delivery point for WTI after the start of oil flow from the southern leg of the Keystone XL pipeline. Pipeline which carries crude from Cushing to Gulf Coast refineries in Texas with a fully attained capacity towards the end of this year to 700,000 barrels per day. Previous week to the US government backed DOE said crude stocks fell at Cushing. In some other related news from the oil industry, OPEC said crude production from the agency during the month of January rose by 150,000 barrels per day (BPD) to 29.87 MBPD in January from 29.72 MBPD last month. As per an update from Platt’s, an increase of 280,000 BPD worth of crude from Libya helped offset drops in Angola, Iraq and Saudi Arabia. This is one of reasons behind underperformance for Brent yesterday wherein March expiry crude slid near 0.9% to close at $108.60 a barrel in London. The spread between the two fell to near $8.6 per barrel. In other cues related to global markets, cautiousness was prevailing testimony of the newly joined Fed Chair Yellen, in the central bank’s semiannual testimony on the state of the economy and the direction of monetary policy. Her comments over economy, inflation and course of future monetary policy would be watched closely. For the day we believe oil prices may remain in the range for the day while a moderately bullish view could be noticed.
Global Market Analysis: The US market posted a marginally bullish close last night so the effect is now felt on Asians. The Asian equity markets are comfortably trading above 1% and the currencies are on a slightly appreciating note. As of now USD/INR is trading at 62.35 up by 0.12%. There are no major global cues but euro currency has advanced against the greenback and trading at $1.3670, the pond sterling is managing at $1.6420 while the JPY currency prefers to stay weak above 102.From energy front, WTI oil March future contract price are maintaining at $100 but we feel market would be really cautious. We believe so much of gains are noticed on oil as the distillate stocks are expected to decline in the US due to cold weather. We hold a bullish view on oil today but expect to remain cautious. Hence, we suggest only momentary trades today
BUY CRUDE OIL MCX FEB ABOVE 6261 ADD MORE ON DIPS NEAR 6241 SL 6224 TGT 6297-6317
COMMODITY MARKET EVENTS FOR DAY TRADING:
| DATE | TIME | Region | Event of the Day | Period | Survey | Prior |
| 11.02.14 | 18:00 | US | NFIB Small Business Optimization | Jan | 93.50 | 93.90 |
| 11.02.14 | 20:30 | US | JOLTs Job Openings | Dec | — | 4001 |
| 11.02.14 | 20:30 | US | Wholesale Inventories MoM | Dec | 0.50% | 0.50% |