Mortgage Applications and Commodity Intraday Tips
Crude Oil Commodity Intraday Trades higher run-rate for gasoline makes the case for increasing refinery runs ahead of the start of actual demand period in the US. Summer driving season which officially would be kick-started on 26th May along with the Memorial Day holiday marks healthy demand period for gasoline commodity in the US. Crude oil price, particularly the ICE Brent added 0.3% to trade near the $108.25 per barrel level tracking fresh developments in Ukraine. Initial numbers showed, pro-Russian groups voted in favor of secession in Eastern Ukraine however the same was called illegal by the west. Broader cues for the WTI stay positive backed by anticipation that demand would come in next few weeks meanwhile it is likely to get additional support from Brent prices. We maintain our bullish scenario for the commodity and recommend buying the same on declines today Global Market Analysis Asian markets are trading mixed this morning while the currencies are trading weak against the USD. From the global front though there has been no major developments but the rising USD index to near 80 marks has pulled euro and pound lower and trading at $1.3756 and $1.6851 respectively. Coming to crude oil, we believe WTI grade oil may remain impulsive while Brent may remain elevated due to heightened Ukraine tension. For the day, oil is expected to remain sideways and we do not intend to suggest any strong call in the underlying unless it clears the strong support or resistance levels Natural Gas As per important updates from the Commodity Intraday view, weekly stocks for the commodity increased by 74 BCF, its second stocks addition report and stood higher than expected while pushing prices lower. The US EIA data showed increase in stocks was higher than markets forecasts of a rise near 70 BCF while managed to stay in-line with the five-year weekly average additions during this time of the year. Demand for the commodity stays muted during this part of the year as normal temperatures for larger part of the country during spring season leads towards lower heating or cooling demand. We are holding with our selling bias in the commodity. Traders can also look into Crude/NG ratio wherein they can look into buying the ratio on dips in intraday trade Commodity Intraday Tips Natural Gas Mcx May Sell at 273 sl 277 Tgt 268-265 Mentha Oil Mcx May Buy at 871 sl 860 Tgt 886-896