Technically Crude Oil market is under short covering as market has witnessed drop in open interest by 14.68% to settled at 7562 while prices up 8 rupees.
Now MCX Crude Oil is getting support at 5521 and below same could see a test of 5455 levels, and resistance is now likely to be seen at 5664, a move above could see prices testing 5741.
Crude oil yesterday settled up by 0.14% at 5587 boosted by a tighter supply and firm demand outlook, but power shortages in China which hit factory output tempered the rally.
Hurricanes Ida and Nicholas, which swept through the U.S. Gulf of Mexico in August and September, damaged platforms, pipelines and processing hubs, shutting most offshore production for weeks.
Also weighing on supply, top African oil exporters Nigeria and Angola will struggle to boost output to their quotas set by the Organization of the Petroleum Exporting Countries (OPEC) until at least next year due to underinvestment and maintenance problems, sources at their respective oil firms warn.
Oil demand will grow sharply in the next few years as economies recover from the pandemic, OPEC forecast, adding that the world needs to keep investing in production to avert a crunch despite an energy transition.
Oil use will rise by 1.7 million barrels per day in 2023 to 101.6 million bpd, the Organization of the Petroleum Exporting Countries said its 2021 World Oil Outlook, adding to robust growth already predicted for 2021 and 2022 OPEC/M , and pushing demand back above the pre-pandemic 2019 rate.
–Crude Oil trading range for the day is 5455-5741.
–Crude Oil rose boosted by a tighter supply and firm demand outlook.
–Oil demand will grow sharply in the next few years as economies recover from the pandemic, OPEC forecast.
–OPEC also lowered its estimates for longer-term oil demand, citing changes to consumer behaviour brought about by the pandemic and competition from electric cars.
Courtesy: Kedia Commodities
Source: Comodity Online