Crude Oil rose yesterday after China, the world’s second-biggest energy-consuming country, said yesterday crude imports increased by 14 percent in April.
Oil also climbed as the dollar fell to the lowest level against the euro since March, bolstering demand for commodities as an alternative investment. China will increase imports of commodities including oil and boost inventories of strategic raw materials to take advantage of weak prices.
The country is also buying commodities as it attempts to diversify investments away from Treasuries. China boosted purchases of U.S. debt by 46 percent to a record last year.
Now support for the crude is seen at 2862 and below could see a test of 2817. Resistance is now likely to be seen at 2954, a move above could see prices testing 3001.
Trading Ideas:
Crude trading range is 2820-2990.
Technically last week crude closed above 56$ now look to touch 63$ soon
MCX Crude May buy above 2916 SL 2894 TGT 2928-2944-2965.
China will increase imports of commodities including oil.
