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Thursday, August 11, 2022

Crude Oil market under fresh buying; Support seen at 4938

Silver market under fresh selling; Support seen at 37100

MCX Gold may trade in range between 30460-30866 levels

MCX Crude Palm Oil under Fresh selling; Support seen at 604.4

NCDEX Ref Soy Oil may trade between 744-750 levels

NCDEX Soyabean under fresh buying; Resistance seen at 3283

Technically Crude Oil market is under fresh buying as market has witnessed gain in open interest by 21.72% to settled at 14247 while prices up 128 rupees.

Now MCX Crude Oil is getting support at 4938 and below same could see a test of 4833 levels and resistance is now likely to be seen at 5101, a move above could see prices testing 5159.

Crude Oil on MCX settled up 2.6% at 5044 after a report of falling crude inventories and the looming sanctions against Iran fueled expectations of a tightening market.

Prices were also pushed up by Hurricane Florence, which is expected to make landfall on the U.S. East Coast on Friday, and which has caused fuel shortages following the evacuation of millions of households and businesses.

The global oil market has recovered from an oversupply crisis thanks to a 2016 Vienna accord to curb output but remains “fragile” due to geopolitics and production declines in some nations, Russia’s energy minister said.

“Today, the situation is quite fragile, of course, and it is related to the fact that not all the countries have managed to restore their market and production,” Russian Energy Minister Alexander Novak said at an economic conference in the Russian far eastern city of Vladivostok.

“We observe such situation in Mexico, where the decline more than halved from the forecasts on 2018. In Venezuela production is falling quite strongly, by 50,000 barrels per day. This means that the market is still not balanced in long-term perspective.”

U.S. crude stocks fell by 8.6 million barrels in the week to September 7 to 395.9 million barrels, the American Petroleum Institute (API), a private industry group, said. Outside the United States, traders have been focusing on the impact of looming U.S. sanctions against Iran, which will target oil exports from November.      

Trading Ideas:
–Crude Oil trading range for the day is 4833-5159.
–Crude oil rose after a report of falling crude inventories and the looming sanctions against Iran fueled expectations of a tightening market.
–The global oil market has recovered from an oversupply crisis thanks to a 2016 Vienna accord to curb output but remains “fragile” due to geopolitics.
–Russian Energy Minister Alexander Novak said that the OPEC+ oil group may sign a new long-term cooperation deal at the beginning of December.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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