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Wednesday, May 25, 2022

MCX Crude Oil under long liquidation; Support seen at 4516

MCX Aluminium may trade between 140.6-144.4 levels

Nickel market under long liquidation; Support seen at 916.6

MCX Zinc may trade in a range between 161.9-173.1

MCX Copper may trade between 395.2-420.2 levels

Natural Gas market under long liquidation; Support seen at 202.4

Technically Crude Oil market is under long liquidation as market has witnessed drop in open interest by 13.98% to settled at 6896 while prices down 129 rupees.

Now MCX Crude Oil is getting support at 4516 and below same could see a test of 4448 levels and resistance is now likely to be seen at 4661, a move above could see prices testing 4738.

Crude Oil on MCX settled down 2.74% at 4583 amid increasing concerns about slowing global economic growth that could hit demand for petroleum products as inventories build. Crude oil prices are on track for third-straight weekly drop as expectations for steeper losses of Iran crude has struggled to stem the slide in oil prices.

Data showing a large build in U.S. inventories fostered fears about the outlook for fuel demand, while crude was also pressured by broader selling of industrial commodities and by the Turkish financial crisis.

China and the United States have implemented several rounds of trade tariffs and threatened further duties on exports worth hundreds of billions of dollars, which could knock global economic growth.

At the same time, the crisis gripping the Turkish lira has rattled emerging markets and reverberated across equities, bonds and raw materials. U.S. data showed crude output rose by 100,000 barrels per day to 10.9 million bpd in the week ending Aug. 10. Crude inventories increased by 6.8 million barrels, representing the largest weekly rise since March last year.

Asian demand is showing signs of slowdown as trade disputes and a stronger dollar drag the economies of some of the world’s largest oil buyers. Global oil demand growth for 2019 was lowered by 20,000 barrels per day (bpd) to 1.4 million bpd, while non-OPEC oil supply in 2019 was revised up by 30,000 bpd to 2.13 million bpd.             

Trading Ideas:
–Crude Oil trading range for the day is 4448-4738.
–Crude oil dropped amid increasing concerns about slowing global economic growth that could hit demand for petroleum products.
–The oil market had felt the effects of a large build in U.S. inventories that added to concern over the outlook for fuel demand.
–U.S. data showed crude output C-OUT-T-EIA rose by 100,000 barrels per day (bpd) to 10.9 million bpd in the week ending Aug. 10.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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