21.2 C
New York
Wednesday, August 17, 2022

MCX Crude Oil under long liquidation; Support seen at 4828

Aluminium market under short covering; Support seen at 146.2

Nickel market under fresh selling; Resistance seen at 896.6

MCX Zinc under fresh selling; Support seen at 172.8

MCX Cotton market under short covering; Support seen at 22736.6

MCX Cardamom under fresh buying; Support Seen at 1438.4

Technically Crude oil market is under long liquidation as market has witnessed drop in open interest by 4.77% to settled at 13410 while prices down 1 rupees.

Now MCX Crude Oil is getting support at 4828 and below same could see a test of 4773 levels and resistance is now likely to be seen at 4918, a move above could see prices testing 4953.

Crude oil settled flat as signs of tightening U.S. output were offset by a stronger dollar and fears rising U.S.-China trade tensions could hamper oil demand. Oilfield services firm Baker Hughes reported that the number of U.S. oil drilling rigs in operation fell by 2 to 860.

The fall in rig counts, pointing to signs of contracting crude output, echoed data from a day earlier showing U.S. output remained unchanged from the prior week at 11.0 million barrels a day.

An OPEC and non-OPEC technical committee will discuss proposals for sharing out an oil-output increase, a tense topic for the producer group after it decided in June to ease supply curbs. A panel called the Joint Technical Committee will consider proposals on distributing the agreed output increase of 1 million barrels per day, the sources said.

OPEC, Russia and other non-members agreed in June to return to 100 percent compliance with oil output cuts that began in January 2017. Months of underproduction in Venezuela and elsewhere had pushed adherence above 160 percent.

The June meeting concluded with a deep disagreement between Saudi Arabia and Iran, longtime rivals in OPEC. Saudi Arabia said the decision implied a reallocation of extra production from countries unable to produce more to those, such as Riyadh, that can. Iran, facing a forced cut in its oil exports because of U.S. sanctions, disagreed.      

Trading Ideas:
–Crude oil trading range for the day is 4773-4953.
–Crude oil settled flat as signs of tightening U.S. output were offset by a stronger dollar and fears rising U.S.-China trade tensions could hamper oil demand.
–A mixed petroleum report showing crude stockpiles fell, but product inventories rose sharply also weighed on sentiment.
–Oilfield services firm Baker Hughes reported that the number of U.S. oil drilling rigs in operation fell by 2 to 860.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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