3.8 C
New York
Tuesday, November 30, 2021

Crude Oil market under fresh buying; Support seen at 5380

MCX Nickel under fresh buying; Resistance seen at 923.2

MCX Aluminium likely to move in a range of 148.1-155.7

MCX Menthol Oil under long liquidation; Support seen at 1660.6

Natural Gas market under fresh buying; Support seen at 222.2

MCX Cotton market under short covering

Technically Crude Oil market is under fresh buying as market has witnessed gain in open interest by 9.15% to settled at 22365 while prices up 166 rupees.

Now MCX Crude Oil is getting support at 5380 and below same could see a test of 5259 level, And resistance is now likely to be seen at 5567, a move above could see prices testing 5633.

Crude Oil on MCX settled up 3.11% at 5501 ahead of U.S. sanctions against Iran, the third-largest producer in the Organization of the Petroleum Exporting Countries (OPEC), that kick in next month.

Prices were supported by a report of a stagnant rig count in the United States, which points to a slowdown in U.S. crude production, which now rivals top producers Russia and Saudi Arabia.

OPEC delivered only a limited increase in oil production in September, as a cut in Iranian shipments due to U.S. sanctions offset higher output in Libya, Saudi Arabia and Angola.

The 15-member Organization of the Petroleum Exporting Countries pumped 32.85 million barrels per day in September, the survey on Monday found, up 90,000 bpd from August’s revised level and the highest this year.

In a sign that the financial market is positioning itself for further price rises, hedge funds increased their bullish wagers on U.S. crude in the week to Sept. 25, data from the U.S. Commodity Futures Trading Commission (CFTC) showed, increasing futures and options positions in New York and London by 3,728 contracts to 346,566 during the period.

With oil prices soaring, there are concerns over their inflationary effect on demand growth, especially in Asia’s emerging markets where weakening currencies are further adding to high fuel import costs.

Add the trade disputes between the United States and other major powers, especially China, and economic growth into 2019 could be eroded.       

Trading Ideas:
–Crude oil trading range for the day is 5259-5633.
–Crude oil prices rose ahead of U.S. sanctions against Iran, that kick in next month.
–Prices were supported by a report of a stagnant rig count in the United States, which points to a slowdown in U.S. crude production.
–OPEC delivered only a limited increase in oil production in September, as a cut in Iranian shipments due to U.S. sanctions offset higher output.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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