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Friday, March 24, 2023

MCX Crude Oil under short covering; Support seen at 5969

Technically Crude Oil market is under short covering as market has witnessed drop in open interest by 19.27% to settled at 3690 while prices up 74 rupees.

Now MCX Crude Oil is getting support at 5969 and below same could see a test of 5901 levels, and resistance is now likely to be seen at 6098, a move above could see prices testing 6159.

Crude Oil yesterday settled up by 1.24% at 6037 as supply from producer countries remained tight. The upside remained capped by fears over demand as Covid-19 cases rise across Europe.

An oil market rally may ease off as prices that hit a three-year high last month help push up global production, particularly in the United States, the International Energy Agency (IEA) said.

“The world oil market remains tight by all measures, but a reprieve from the price rally could be on the horizon … due to rising oil supplies,” the Paris-based agency said in its monthly oil report.

Crude Oil production from the Permian Basin, the largest U.S. oil field, is set to surpass its pre-pandemic record in December, a swift turnaround that has not been replicated in the country’s other oil regions.

Money managers raised their net long U.S. crude futures and options positions in the week to Nov. 9, the U.S. Commodity Futures Trading Commission (CFTC) said.The speculator group raised its futures and options position in New York and London by 11,328 contracts to 353,807 during the period.

Speculators in four New York Mercantile Exchange and Intercontinental Exchange markets trimmed their net long position on natural gas in the week ended Nov. 9 to 123,550 from 135,541.

Trading Ideas:
–Crude Oil trading range for the day is 5901-6159.
–Crude Oil edged higher as supply from producer countries remained tight.
–Oil price rally set to ease off as supply rebounds, IEA says.
–Crude Oil production at biggest U.S. shale field set to hit new record.

Courtesy: Kedia Commodities

Source: Comodity Online

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