MCX Zinc likely to trade in a range between 194.4-201.4
MCX Copper expected to trade between 459.1-472.3 levels
MCX Natural Gas may trade in a range between 196.1-204.3
MCX Silver may trade in a range between 39401-40781
Gold market under long liquidation; Support seen at 32837
Technically Crude Oil market is under long liquidation as market has witnessed drop in open interest by 0.78% to settled at 9307 while prices down 31 rupees.
Now MCX Crude Oil is getting support at 4020 and below same could see a test of 3981 levels and resistance is now likely to be seen at 4090, a move above could see prices testing 4121.
Crude Oil on MCX settled down 0.76% at 4058 amid surging U.S. supply and a global economic slowdown prevented crude from climbing further. Prices were dragged down by surging American crude oil production, which has risen by more than 2 million barrels per day (bpd) over the last year, to an unprecedented 12.1 million bpd.
On the other hand, the EIA also reported that crude oil inventories fell by 8.65 million barrels in the week to Feb. 22 compared to forecasts for a build of 2.84 million. It was the first U.S. crude stockpile drop in six weeks, coming after the production cuts by OPEC. In the previous week to Feb. 15, crude balances had risen by nearly 3.7 million barrels.
Factory activity in China, the world’s biggest oil importer, shrank for a third straight month in February, as export orders fell at the fastest pace since the global financial crisis a decade ago, official data showed. Amid weak demand from China, oil producers are having to cut prices.
In Japan, Asia’s second-biggest economy, factory output posted the biggest decline in a year in January as China’s slowdown affects the entire region. Still, oil markets remain relatively well supported by supply cuts by the Organization of the Petroleum Exporting Countries (OPEC), which together with some non-affiliated producers like Russia, known as ‘OPEC+’, agreed late last year to reduce output by 1.2 million bpd to prop up prices.
–Crude Oil trading range for the day is 3981-4121.
–Crude Oil dropped amid surging U.S. supply and a global economic slowdown prevented crude from climbing further.
–US crude stocks unexpected fell and as Saudi Arabia brushed aside pressure from President Donald Trump.
–Prices were dragged down by surging American crude oil production, which has risen by more than 2 million barrels per day (bpd) over the last year.
Courtesy: Kedia Commodities