MTECHTIPS COMMODITY MARKET NEWS 1

MTECHTIPS:-Crude gains despite Mideast cease fire, rises as inventories fall

Crude oil futures rose in Asian trading on Thursday despite a cease fire in the Middle East that ended fighting between Israel and Hamas militants in the Gaza Strip.A surprise drop in U.S. crude stockpiles pushed the commodity higher.On the New York Mercantile Exchange, light, sweet crude futures for delivery in January traded at USD87.68 a barrel on Thursday, up 1.07%, off from a session high of USD87.77 and up from an earlier session low of USD87.64.Hamas rocket attacks and strikes from Israeli military forces ended in wake of a cease fire, which sent oil prices cooling.Oil soared in recent sessions on fears the conflict would morph into a regional military campaign with multiple players and disrupt Middle East oil supply.A surprise decline in U.S. stockpiles, however, kept the rally going.The Energy Information Administration said earlier that U.S. crude oil inventories dropped by 1.47 million barrels in the week ending Nov. 16, defying analysts forecasts for inventories to rise 940,000.The report added that total motor gasoline inventories decreased by 1.5 million barrels during the same time period.Meanwhile in the U.S., the Department of Labor reported that the number of individuals filing for initial jobless claims last week declined to a seasonally adjusted 410,000, in line with expectations.

MTECHTIPS:-Gold gains on central bank demand, U.S. economic data

Gold prices rose in Asian trading on Thursday amid reports that central banks around the world have been stocking up on the precious metal.Central banks in Brazil, Turkey, Kazakhstan and other countries added more gold to their reserves in October, according to data from the International Monetary Fund, which sent prices rising.On the Comex division of the New York Mercantile Exchange, gold futures for December delivery were up 0.44% at USD1,731.25 a troy ounce, up from a session low of USD1,728.25 and down from a high of USD1,732.35 a troy ounce.Gold futures were likely to test support at USD1,720.25 a troy ounce, Wednesday's low, and resistance at USD1,735.55, Monday's high.Gold also edged higher on reasonably solid albeit uneven U.S. data, which sparked some demand for risk.Earlier in the U.S., the Conference Board reported that its Leading Economic Index rose in October, gaining 0.2% in wake of rising 0.5% in September, whose figure was revised down from 0.6%.The index grew in line with analysts' expectations for October. Elsewhere, the Thomson Reuters/University of Michigan final consumer sentiment index for November disappointed.

MTECHTIPS:-Crude Oil bounces on China expansion, US stockpile dip

With a preliminary reading of China's Purchasing Manager's Index or PMI at 50.4, signaling an economic expansion for the the first time in 13 months, crude oil bounced for a second day. Besides, the news that US stockpiles of crude oil has dropped by 1.47 million barrels last week also lent an upside to crude prices.The Bloomberg Survey of analysts had predicted a drop of 1 million barrels.As of 10.17 am IST, Brent oil for January delivery is a tad down by 0.14% and was at $110.86 a barrel on ICE Futures Europe. Its counterpart across the Atlantic was up by 0.95% and was at $87.56 a barrel.On India's MCX, crude oil for December delivery was seen trading at Rs.4850 a barrel, up by 0.56% on 10.08 am IST.China has been providing good fundamentals, and if the economy moves to a higher level, they need oil, said Tetsu Emori, a chief fund manager at Astmax Investment

Management Inc. inTokyo said to Bloomberg. Downside risk is quite limited, and were looking for oil to reach $110 by the end of the year.

MTECHTIPS:-China Oct Silver imports down for 25th month

When it comes to precious metals appetite of China , the weakness in imports signalled in September continued in October with silver imports down y/y for the 25th straight month; palladium imports for the fifth consecutive month and platinum imports for a second month.Chinas crude oil imports in October came in at 5.6 mb/d, up 13.8% y/y; implied oil demand was up 7% y/y while YTD demand is now higher by 3% y/y. While Barclays expects a recovery in Chinas oil demand growth, the pace is likely to be modest over Q4, a report from the Bank said.This is after factoring in the underlying demand trends for key products as well as Barclays' economists view of a stabilisation in GDP growth rather than a pronounced recovery China's refinery appetite for crude oil in H2 so far has outperformed H1 in terms of growth but this was partially due to a series of retail fuel price hikes that helped boost refinery margins in September and October.With retail fuel prices cut again in November, margins are under pressure again, and one could see the gains in refinery runs moderating going into Q4, especially with underlying product demand not being exceptionally strong.