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New York
Tuesday, May 17, 2022

MCX Crude Oil may trade in a range between 4523-4629

Aluminium market under fresh buying; Support seen at 141.6

Nickel market under long liquidation; Support seen at 939.8

MCX Cotton under fresh buying; Support seen at 23334

MCX Cardamom under fresh buying; Resistance seen at 1363.5

Zinc market under fresh selling; Support seen at 166.2

Technically MCX Crude Oil is getting support at 4552 and below same could see a test of 4523 levels and resistance is now likely to be seen at 4605, a move above could see prices testing 4629.

Crude Oil on MCX settled up 0.24% at 4582 as expected falls in supply over Iran sanctions outweighed concerns over the global economy. Oil prices have been driven higher in the past few months as demand for oil outsrips supply but cooled in recent weeks amid trade tensions and supply disruptions.

Trade worries eased as U.S. and Chinese officials are expected to talk in Washington on Wednesday and Thursday, shortly before new U.S. charges on Chinese goods take effect. Upcoming U.S. sanctions against Iran also supported prices.

The financial sanctions against Iran were introduced this month by the U.S. government and will target the petroleum sector of Iran in November. Iran asked the EU to speed up efforts to save the 2015 nuclear deal between Tehran and major powers that U.S. President Donald Trump pulled out of.

In the United States, energy companies last week kept the oil rig count unchanged, according to the Baker Hughes services firm as weaker oil prices temper the pace of U.S. production growth. Meanwhile, hedge funds cut their bullish positions in oil and refined fuels to the lowest level for almost a year.

Traders said U.S. sanctions against Iran were supporting prices. The U.S. government has introduced financial sanctions against Iran which, from November, will also target the petroleum sector of OPEC’s third largest producer.

However, China signaled it wanted to continue buying large volumes of Iranian oil despite U.S. pressure and was now switching to Iranian tankers to skirt U.S. sanctions on ship insurers.  

Trading Ideas:
–Crude oil trading range for the day is 4523-4629.
–Crude oil steadied as expected falls in supply over Iran sanctions outweighed concerns over the global economy.
–In the United States, U.S. energy companies last week kept the oil rig count unchanged at 869, according to the Baker Hughes.
–Outside the United States, traders said U.S. sanctions against Iran could soon impact prices.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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