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Crudeoil

Observations

Crudeoil trading range for the day is 6462-6888.

Crude oil dropped amid a strong dollar and concern over the economy of China.

WTI futures backwardation widens to 8 – month high as Cushing stocks fall

Crude stocks at the Cushing hub, excluding SPR barrels fell by 875,000 barrels to 32.66 million in the week to July 12.

EIA reported a 4.9-million-barrel decrease in crude stocks last week.

SELL CRUDEOIL AUG @ 6680 SL 6750 TGT 6600-6540. MCX

Natural Gas

Observations

Naturalgas trading range for the day is 170.4-181.8.

Natural gas dropped influenced by milder weather forecasts and reduced feedgas to LNG export plants.

Gas flows to US LNG export facilities decreased to 11.6 bcfd so far in July, down from 12.8 bcfd in June.

Meteorologists forecast near-normal weather across the Lower 48 states through July 24, followed by hotter-than-normal conditions until August 1.

Gas output in the Lower 48 U.S. states has risen to an average of 102.2 bcfd so far in July

BUY NATURALGAS JUL @ 175 SL 171 TGT 180-184. MCX

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