UPDATES ON JULY 31 2008

JULY 31 THURSDAY

SHORT TERM TREND : SIDEWAYS: TARGET RS 5270 TO 5430

LONG TERM TREND : BULLISH : TARGET RS 6460

S1 RS 5310, S2 RS 5270, S3 RS 5230

R1 RS 5385, R2 RS 5426 , R3 RS 5475

PRICES ARE EXPECTED TO TAKE SOME UPWARD CORRECTION.


Oil Drops on Speculation U.S. Fuel Demand Will Weaken Further .

Crude oil declined on speculation that high prices and

slowing economic growth will further reduce demand

in the U.S., the world's biggest energy user.

U.S. fuel consumption averaged 20.2 million barrels a day in

the past four weeks, down 2.4 percent from a year earlier,

according to a weekly report by the Energy Department

yesterday. Nigeria, the U.S.'s fourth-largest supplier, said

production remains close to 2 million barrels a day even

after recent pipeline attacks.

Crude oil for September delivery fell as much as 82 cents,

or 0.7 percent, to $125.95 a barrel. The contract traded

for $126.31 at 11 a.m. London time. Prices are 62 percent

higher than a year ago.

Futures gained $4.58, or 3.8 percent to settle at $126.77

yesterday, the highest close since July 22, after the Energy

Department report showed gasoline inventories fell

for the first week in five.

Brent crude oil for September settlement traded at $126.62 a

barrel, down 57 cents, at 10:26 a.m. London time on London's

ICE Futures Europe exchange. The contract rose $4.39, or

3.6 percent, yesterday to settle at $127.10.

Iranian Supreme Leader Ayatollah Ali Khamenei said his

country will push forward with its uranium enrichament

program. Speculation that Israeli will use force to stop

Middle East's second-largest exporter from acquiring

nuclear technology has supported prices since 2006.