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Wednesday, July 6, 2022

Crude Oil market under long liquidation; Support seen at 4590

Natural gas market under fresh selling; Support seen at 188.5

MCX Zinc under fresh selling; Resistance seen at 173.5

MCX Nickel under fresh selling; Support seen at 898.8

Silver market under fresh selling; Support seen at 37820

MCX Aluminium under fresh selling; Resistance seen at 141.8

Technically Crude Oil market is under long liquidation as market has witnessed drop in open interest by 10.38% to settled at 9228 while prices down 105 rupees.

Now MCX Crude Oil is getting support at 4590 and below same could see a test of 4550 levels and resistance is now likely to be seen at 4690, a move above could see prices testing 4750.

Crude Oil on MCX settled down 2.22% at 4629 after data showed an unexpected build in U.S. crude stockpiles as imports increased and exports fell. Oil prices were also hampered by a reported increase in UAE output by about 85,000 barrels a day July.

While Saudi output rose to a near-record high of 10.65 million barrels a day last month. U.S. crude inventories rose 3.8 million barrels last week as imports jumped, the government’s Energy Information Administration said.

There were some bullish elements in the report, notably gasoline stocks declining by 2.5 million barrels. Also, crude stocks at the Cushing, Oklahoma, delivery hub for WTI futures were down, dropping by 1.3 million barrels, EIA data showed.

On Tuesday, the EIA reported that U.S. crude production fell 30,000 barrels per day to 10.44 million bpd in May. Nonetheless, the tough talk from Washington on trade with China has put pressure on oil prices.

U.S. President Donald Trump sought to ratchet up pressure on China for trade concessions by proposing a higher 25 percent tariff on $200 billion worth of Chinese imports, his administration said on Wednesday.

Brazilian oil exports hit a record in July, nearly three times its shipments in June and 50 percent higher than a year earlier, government data showed on Wednesday. Iraq exported 3.543 million barrels per day (bpd) of crude from its southern ports in July, slightly above the June average, the oil ministry said on Wednesday.      

Trading Ideas:
–Crude oil trading range for the day is 4550-4750.
–Crude oil prices settled lower after data showed an unexpected build in U.S. crude stockpiles as imports increased and exports fell.
–U.S. crude inventories rose 3.8 million barrels last week as imports jumped, the government’s Energy Information Administration said.
–Signs that a supply disruption in the Bab al-Mandeb Strait in the Red Sea could be resolved also weighed on prices.

Courtesy: Kedia Commodities 

Source: Commodityonline.com

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