MCX Crude Oil under long liquidation; Support seen at 3852

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MCX under long liquidation; Support seen at 37688

Technically Crude Oil market is under long liquidation as market has witnessed drop in open interest by 4.72% to settled at 9188.

Now MCX Crude Oil is getting support at 3852 and below same could see a test of 3808 level, and resistance is now likely to be seen at 3952, a move above could see prices testing 4008

pared gains after OPEC issued a bearish outlook for the oil market this year and forecast a surplus in 2020. Prices gained this year thanks to supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC) and allies such as Russia, a group known as OPEC+.

OPEC provided a downbeat oil-market outlook for the rest of 2019 as economic growth slows and highlighted challenges in 2020 as rivals pump more, building a case to keep up an OPEC-led pact to restrain supplies. In a monthly report, the Organization of the Petroleum Exporting Countries cut its forecast for oil demand growth in 2019 by 40,000 barrels per day (bpd) and indicated the market will be in slight surplus in 2020.

The demand for OPEC crude will average 29.41 million bpd next year, OPEC said, down 1.3 million bpd from this year. Still, the 2020 forecast was raised 140,000 bpd from last month’s forecast. In , OPEC and its allies renewed a supply-cutting pact until March 2020, citing the need to avoid a build-up of inventories that could hit prices.

U.S. crude oil stockpiles rose unexpectedly for a second week in row as refineries cut output last week, while fuel inventories posted surprise drawdowns with gasoline demand hitting a record high, the said. Crude inventories rose by 1.6 million barrels in the week to Aug. 9, compared with expectations for a decrease of 2.8 million barrels.

Trading Ideas:
–Crude Oil trading range for the day is 3808-4008.
–Crude Oil prices pared gains after OPEC issued a bearish outlook for the oil market this year and forecast a surplus in 2020.
–OPEC lowers 2019 global demand forecast to 1.1mbpd from 1.14mbpd, adds that oil market seems somewhat bearish for the rest of 2019.
–A Saudi official indicated more steps may be coming, saying: “Saudi Arabia is committed to do whatever it takes to keep the market balanced next year”.

Courtesy: Kedia Commodities

Source: Commodityonline.com