MUMBAI/NEW YORK (Commodity Online):A pull back in crude oil prices cannot be ruled out despite the uncertain and weak macro-economic environment, according to some analysts.
On technical charts, the mid-range close on Wednesday suggest a steady opening in US markets for Thursday night session, HY Markets said.
?Stochastics and the RSI are bullish signalling that sideways to higher prices are possible nearterm. If it extends last Friday's rally, the 38% retracement level of this year's decline crossing is the next upside target. Closes below the 10day moving average crossing would temper the nearterm friendly outlook?
On the macro economic side, German factory orders US unemployment data due on Friday, weak ChIna PMI data all pointer to a weaker global picture and hence for Oil demand.
According to some analysts, US Crude Oil may trade in $70-80 range if there is no visible improvement in global oil demand. Brent slid yesterday after Norway?s Oil Industry Association said it?s willing to negotiate to end a 10-day strike as quickly as possible. The labor dispute, the first industrywide by energy workers since 2004, has affected as much as 250,000 barrels a day of output, including some crude that provides the physical basis for the European futures contract., Bloomberg reported.
The European Union embargo on Iran has come into effect from July 1 and Iran?s crude exports are expected to fall by one million barrels a day. India?s imports from Iran have fallen 11% and it is being paid in Euros due to hurdles in Rupee payments?
According to SMC Comtrade, MCX Crude oil July contract may trade sideways in range of 4700-4850 in near term. Oil fell in New York on speculation data from Europe to the U.S. will signal an economic slowdown that threatens to cut demand.
US WTI Crude Oil outlook from HY Markets: Support $86.43 , 85.82, 85.18 per barrel; Resistance : 88.93, 88.32; 87.68 per barrel?
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