19.9 C
New York
Tuesday, May 24, 2022

MCX Crude Oil under fresh buying; Support seen at 5539

Technically Crude Oil market is under fresh buying as market has witnessed gain in open interest by 19.97% to settled at 8746 while prices up 45 rupees.

Now MCX Crude Oil is getting support at 5539 and below same could see a test of 5462 levels, and resistance is now likely to be seen at 5663, a move above could see prices testing 5710.

Crude Oil yesterday settled up by 0.81% at 5616 on expectations that OPEC ministers will maintain a steady pace in raising supply.

However upside seen limited on concerns about the Chinese economy and signs of slowing global growth amid rising costs and heightened supply chain disruptions.

Asia’s manufacturing activity broadly stagnated in September as pandemic-induced factory shutdowns and waning economic momentum in China weighed on the region’s economies, surveys showed.Elsewhere, Eurozone manufacturing growth weakened in September as producers report a growing toll from supply chain headwinds, IHS Markit noted.

U.S. crude oil production increased by 31,000 barrels per day in July to 11.307 million bpd, up from a revised 11.276 million bpd in June, the U.S. Energy Information Administration said in a monthly report.Crude output was lifted by production gains in Texas and in the Gulf of Mexico. Offshore production in the Gulf of Mexico rose 56,000 bpd in July, the report said.

OPEC+ is considering going beyond its existing deal to boost production by 400,000 barrels per day (bpd) when it meets next week, at a time when oil prices are near a three-year high and consumers are pressing for more supply.The Organization of the Petroleum Exporting Countries and allies led by Russia, known as OPEC+, meets on Monday to review output policy.

Trading Ideas:
–Crude Oil trading range for the day is 5462-5710.
–Crude Oil gained on expectations that OPEC ministers will maintain a steady pace in raising supply.
–Iraq oil exports for September are based on the average price of $72.6 per barrel.
–Russia’s offline primary oil refining capacity in October is seen at 3.464 mln tonnes, up 9.1% from last weekly forecast.

Courtesy: Kedia Commodities

Source: Comodity Online

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