Technically Crude Oil market is under long liquidation as market has witnessed drop in open interest by 0.94% to settled at 5488 while prices down 40 rupees.
Now MCX Crude Oil is getting support at 6199 and below same could see a test of 6145 levels, and resistance is now likely to be seen at 6312, a move above could see prices testing 6371.
Crude Oil yesterday settled down by 0.64% at 6253 ahead of weekly U.S. supply reports expected to show a rise in crude inventories and of Thursday’s OPEC+ meeting.
The increase in OPEC’s oil output in October fell short of the rise planned under a deal with allies, as involuntary outages in some smaller producers offset higher supplies from Saudi Arabia and Iraq.
The Organization of the Petroleum Exporting Countries (OPEC) pumped 27.50 million barrels per day (bpd) in October, the survey found, and a rise of 190,000 bpd from the previous month but below the 254,000 increase permitted under the supply deal.
OPEC states and their allies, a grouping known as OPEC+, are relaxing output cuts made in 2020 as demand recovers from the coronavirus pandemic, although some members are not delivering the full boosts promised due to a lack of capacity.The OPEC+ alliance is also wary of pumping too much oil in case of renewed setbacks in the battle against COVID-19.
Iraq’s oil exports for October rose to 3.12 million barrels per day (bpd) from 3.081 million bpd in the previous month, the oil ministry said in a statement. Exports from Iraq’s southern Basra terminals reached 3.012 million bpd during October, the ministry said.
–Crude Oil trading range for the day is 6145-6371.
–Crude Oil dropped ahead of weekly U.S. supply reports expected to show a rise in crude inventories and of Thursday’s OPEC+ meeting.
–OPEC output rises 190,000 bpd from September.
–Compliance with OPEC+ cut pledges rises to 118%.
Courtesy: Kedia Commodities
Source: Comodity Online