Technically Crude Oil market is under fresh buying as market has witnessed gain in open interest by 13.15% to settled at 7166 while prices up 49 rupees.
Now MCX Crude Oil is getting support at 6276 and below same could see a test of 6191 levels, and resistance is now likely to be seen at 6412, a move above could see prices testing 6463.
Crude Oil yesterday settled up by 0.78% at 6360 supported by a global supply shortage and strong demand in the United States, the world’s biggest consumer.
While China’s red-hot power and coal markets have cooled somewhat after government intervention, energy prices remain elevated worldwide as temperatures fall with the onset of the northern winter.
Goldman Sachs said Brent is likely to push above its year-end forecast of $90 a barrel. The bank estimated switching to oil from gas may add 1 million barrels per day (bpd) to oil demand.
Gasoline and distillate consumption is back in line with five-year averages in the United States after more than a year of depressed demand. The market will be closely watching U.S. inventory levels this week. Crude oil stockpiles are forecast to have risen by 1.7 million barrels last week.
Gasoline and distillate inventories were expected to fall, however. The South Korean government has decided to temporarily slash domestic tax on key oil products by 20%, a ruling party official told, to reduce pressures from surging global oil and energy prices.
That would be the biggest cut on record, the party official Park Wan-joo said, adding the new tax rate will take effect on Nov. 12 for a period of six months to April 30, 2022.
–Crude Oil trading range for the day is 6191-6463.
–Crude Oil gains supported by a global supply shortage and strong demand in the United States, the world’s biggest consumer.
–Goldman sees upside risks to $90/bbl Brent price forecast.
–S.Korea govt to cut down oil tax by 20% for 6 month.
Courtesy: Kedia Commodities
Source: Comodity Online