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Thursday, October 21, 2021

MCX Crude Oil may trade in a range between 4552-4778

Mentha Oil market under long liquidation; Resistance seen at 1537.5

Aluminium market under fresh buying; Support seen at 138.3

Nickel market under short covering; Support seen at 918

MCX Zinc likely to trade between 169.1-187.5 levels

MCX Copper likely to trade in a range between 411.6-426

Technically now Crude Oil is getting support at 4625 and below same could see a test of 4552 levels and resistance is now likely to be seen at 4738, a move above could see prices testing 4778.

Crude oil on MCX settled up 0.64% at 4699 despite data showed an unexpected build in U.S. crude stockpiles amid a surge in imports, as production was offset by signs of strong demand as product supplies fell. Crude prices were also supported by supply disruptions in the Middle East as rebels in Yemen attacked an oil facility in Saudi Arabia.

Inventories of U.S. crude rose by 5.836 million barrels for the week ended July 13, confounding expectations for a draw of 3.622 million barrels, according to data from the Energy Information Administration (EIA). The unexpected build in crude supplies came as imports rose by 1.635 million barrels a day (bpd) and output rose to a record 11 million bpd, the EIA said.

The build in crude was limited somewhat by increased refinery activity, fuelling larger-than-expected declines in product inventories. Oil production reached a record 11 million barrels per day, the EIA said. The United States has added nearly 1 million bpd in production since November, thanks to rapid increases in shale drilling.

The higher settlement in U.S. oil prices comes as oil observers continued to expect that major oil producers would have little room to address a potential global supply shortage despite a lower-than-expected loss of Iranian crude from the market amid a softer stance from the U.S. on Iranian oil importers.

OPEC countries have limited room to address the potential supply shortage and in the next 12-18 months the market will realize the US can’t support the entire market with spare capacity.

Trading Ideas:
–Crude oil trading range for the day is 4552-4778.
–Crude oil gained despite an unexpected build in crude stockpiles, as production was offset by signs of strong demand as product supplies fell.
–Crude prices were also supported by supply disruptions in the Middle East as rebels in Yemen attacked an oil facility in Saudi Arabia.
–Inventories of U.S. crude rose by 5.836 million barrels for the week ended July 13, confounding expectations for a draw of 3.622 million barrels.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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