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Friday, July 1, 2022

Crude Oil market under short covering; Support seen at 4878

MCX Nickel under fresh selling; Support seen at 882.3

MCX Aluminium under fresh selling; Resistance seen at 145.6

MCX Menthol Oil under fresh buying; Support seen at 1787.3

MCX Silver expected to trade in a range between 38318-39158

MCX Cardamom under long liquidation; Resistance seen at 23090

Technically Crude Oil market is under short covering as market has witnessed drop in open interest by 10.04% to settled at 8497 while prices up 9 rupees.

Now MCX Crude Oil is getting support at 4878 and below same could see a test of 4808 levels and resistance is now likely to be seen at 4993, a move above could see prices testing 5038.

Crude oil on MCX settled up 0.18% at 4947 on renewed hopes that OPEC will cut supplies before the year is out, giving crude prices some strength as they headed for a third-straight week of losses.

Oil prices rose after OPEC signaled it may have to return to production cuts as global inventories begin climbing, a move that may further sour its relations with U.S. President Donald Trump. Saudi Arabia’s OPEC governor said the oil market could face oversupply in the fourth quarter.

Saudi Arabia Energy Minister Khalid Al-Falih said there could be a need for intervention to reduce oil stockpiles after increases in recent months. Falls in stock markets have roiled oil prices this week as Wall Street had its biggest daily decline since 2011Financial markets have been hit hard by a range of worries, including the U.S.-China trade war, a rout in emerging market currencies, rising borrowing costs and bond yields, as well as economic concerns in Italy.

U.S. crude oil stockpiles rose last week for the fifth consecutive week, while gasoline and distillate inventories fell, the Energy Information Administration said this week. Supporting the bearish mood was a report that showed rising inventories at Cushing, Oklahoma, the delivery hub for U.S. crude futures.

Cushing crude stocks rose to 33 million barrels on Tuesday, up almost 1.8 million barrels from the previous week, traders said, citing a report by market intelligence firm Genscape.

Trading Ideas:
–Crude oil trading range for the day is 4808-5038.
–Crude oil gained on renewed hopes that OPEC will cut supplies before the year is out, giving crude prices some strength.
–Saudi Arabia and Russia agreed to extend their pact to preserve oil stability, Saudi Energy Minister Khalid al-Falih said.
–Saudi Arabia and Russia will interfere together, along with the heads of the other producing states, to prevent the market form falling out of balance.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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