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Tuesday, October 26, 2021

Crude Oil market under fresh buying; Support seen at 3960

MCX Natural Gas likely to trade between 183.8-192.6

MCX Nickel under fresh buying; Resistance seen at 878.8

MCX Aluminium likely to move in a range of 129.5-132.7

MCX Mentha Oil under fresh buying; Resistance seen at 1695.5

MCX Silver may trade in a range between 39969-40393

Technically Crude Oil market is under fresh buying as market has witnessed gain in open interest by 5.19% to settled at 9410 while prices up 60 rupees.

Now MCX Crude Oil is getting support at 3960 and below same could see a test of 3910 levels and resistance is now likely to be seen at 4044, a move above could see prices testing 4078.

Crude Oil on MCX settled up 1.52% at 4011 lifted by OPEC-led supply cuts and U.S. sanctions on Iran and Venezuela. The Organization of the Petroleum Exporting Countries (OPEC), as well as some non-affiliated producers like Russia, agreed late last year to cut output by 1.2 million barrels per day (bpd) to prevent a large supply overhang from swelling more.

Further pushing up crude prices have been U.S. sanctions against oil exporters and OPEC-members Iran and Venezuela. Traders said financial markets, including crude futures, were also generally supported by hopes that the United States and China would soon resolve their trade disputes, which have dragged on global economic growth.

At least partly offsetting supply falls has been a surge in U.S. crude oil production by more than 2 million bpd in 2018, to a record 11.9 million bpd. And there are signs that U.S. output will rise further. U.S. energy firms last week increased the number of oil rigs looking for new production by three, to a total of 857, energy services firm Baker Hughes said in a weekly report.

Hedge funds and other money managers raised their bullish bets on U.S. crude in the week to Jan. 22, data showed. The speculator group raised its combined net long futures and options position in New York and London by 17,050 contracts to 128,307 during the period, the U.S. Commodity Futures Trading Commission said.

Trading Ideas:
–Crude oil trading range for the day is 3910-4078.
–Crude oil prices rallied lifted by OPEC-led supply cuts and U.S. sanctions on Iran and Venezuela.
–OPEC as well as Russia, agreed late last year to cut output by 1.2 million barrels per day (bpd) to prevent a large supply overhang from swelling more.
–U.S. energy firms last week increased the number of oil rigs looking for new production by three, to a total of 857.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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