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Thursday, May 26, 2022

Crude Oil market under short covering; Support seen at 4565

Natural Gas market under short covering; Support seen at 204.7

MCX Zinc under short covering; Support seen at 162.1

MCX Nickel under fresh buying; Resistance seen at 957.3

MCX Aluminium likely to move in a range of 139.8-144

MCX Mentha Oil under long liquidation; Resistance seen at 1666.2

Technically Crude Oil market is under short covering as market has witnessed drop in open interest by 19.17% to settled at 5574 while prices up 15 rupees.

Now MCX Crude Oil is getting support at 4565 and below same could see a test of 4531 levels and resistance is now likely to be seen at 4645, a move above could see prices testing 4691.

Crude Oil on MCX settled up 0.33% at 4598 amid reports the U.S. and China are mapping out plans to resolve their trade war later this year. 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. 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.

Markets were worried a potential full-blown trade war between the U.S. and China would slow global economic growth and curb energy consumption, while a standoff between the U.S. and Turkey subsequently sparked fears of contagion among emerging markets.

Oil prices were under pressure after data from the Energy Informational Administration (EIA) showed on Wednesday that the U.S. crude inventory level unexpectedly hiked by 6.8 million barrels in the week ending Aug 10.

Trading Ideas:
–Crude oil trading range for the day is 4531-4691.
–Crude oil prices ended with gains amid reports the U.S. and China are mapping out plans to resolve their trade war later this year.
–Data showing a large build in U.S. inventories fostered fears about the outlook for fuel demand.
–U.S. data showed crude output rose by 100,000 barrels per day to 10.9 million bpd in the week ending Aug. 10.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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