Silver market under fresh buying; Support seen at 38913
Gold market under long liquidation; Support seen at 32059
NCDEX Chana under short covering; Resistance seen at 4322
MCX Cotton under long liquidation
NCDEX Jeera likely to move in a range of 16725-17235
Technically MCX Crude Oil is getting support at 3687 and below same could see a test of 3632 levels and resistance is now likely to be seen at 3818, a move above could see prices testing 3894.
Crude Oil prices inched up after China and Japan said they would use fiscal spending to stem an economic slowdown that is weighing on global financial markets. Russia slightly increased its oil production to 11.39 million barrels per day (bpd) on average between Jan. 1 and Jan 22, a source familiar with the Energy Ministry data told.
Russian oil output averaged 11.38 million bpd between Jan. 1-10. Under a global oil supply cut deal, Russia agreed to cut its oil production from the 11.41 million bpd it pumped in October.
Chinese finance ministry officials on Wednesday said the government would step up fiscal spending this year to support its economy, which last year registered its lowest growth rate since 1990.
The Bank of Japan said it would keep its ultra-easy monetary settings which have been running since 2013. Meanwhile, Japan’s 2018 crude oil imports fell to 3 million barrels per day (bpd), the lowest since records started in 1979, the finance ministry said.
Providing oil prices with support in 2019 have been production cuts led by the Organization of the Petroleum Exporting Countries (OPEC), aimed at reining in an emerging supply overhang. Whether OPEC’s efforts will be successful will also depend on the development of oil production in the United States, where crude output jumped by 2 million bpd in 2018 to an unprecedented 11.9 million bpd. The boom was largely fuelled by onshore shale oil drilling.
And while the U.S. Energy Information Administration (EIA) said that it expected shale output to rise further, it said that production growth would slow in the coming years.
–Crude Oil trading range for the day is 3632-3894.
–Crude oil dropped as traders looked to the possibility of U.S. sanctions on Venezuelan oil, which would lead to a tighter market.
–Russia slightly increased its oil production to 11.39 million barrels per day (bpd) on average between Jan. 1 and Jan 22.
–The U.S. EIA said that it expected shale output to rise further, it said that production growth would slow in the coming years.
Courtesy: Kedia Commodities