Crude oil futures traded down below $76 sliding almost 7% in last three trading sessions amid poor economic data raising doubts over economic recovery pressured by weak global equity indices. Oil prices witnessed high selling pressure since last three days as US Federal Reserve and EU authorities raised worries about global economic recovery which may affect global oil demand.
The Hurricane premium in oil prices is unwinding as this year's hurricane season has not generated any strong tropical storms yet. However the upcoming August-September season is expected to generate strong cyclones according to historical data.
Natural gas futures traded steadied near $4.30 on bearish weekly inventory data and hot midweek weather. The growing supplies are a major concern for natural gas prices. The EIA report showed larger than expected increase in weekly storage.
Natural gas stockpiles rose by 37 Bcf against prior increase of 29 Bcf.
Technical View
The strong resistance for crude oil lies at $78 with support at $74, MCX Crude oil (Aug) resistance lies near 3640 with support at 3510.
MCX Natural gas (Aug) resistance at 210, support at 196.
