Home Commodity Market News MCX Crude Oil under fresh selling; Support seen at 4940

MCX Crude Oil under fresh selling; Support seen at 4940

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Technically Crude Oil market is under fresh selling as market has witnessed gain in open interest by 108.71% to settled at 7908 while prices down 651 rupees.

Now Crude Oil is getting support at 4940 and below same could see a test of 4694 levels, and resistance is now likely to be seen at 5629, a move above could see prices testing 6072.

Crude Oil yesterday settled down by 11.15% at 5186 as a new variant of the coronavirus spooked investors and added to concerns that a supply surplus could swell in the first quarter.

Oil fell with global equities markets on fears the variant, could dampen economic growth and fuel demand. The World Health Organization has designated the new variant, which it named Omicron, as “of concern,” according to the South African health minister.

OPEC+ is also monitoring developments around the variant, sources said, with some expressing concern that it may worsen the oil market outlook less than a week before a meeting to set policy.

The forecasts cloud the outlook for a Dec. 2 meeting when the group will discuss whether to adjust its plan to increase output by 400,000 barrels per day in January and beyond.

U.S. crude stocks rose last week as refineries hiked output, while gasoline stocks decreased and distillate inventories fell, the Energy Information Administration said.

Crude inventories rose by 1 million barrels in the week to November 19, compared with expectations for a decrease of 481,000 barrels. U.S. crude stocks in the Strategic Petroleum Reserve fell last week to the lowest since June 2003, Energy Information Administration data showed.

Trading Ideas:
–Crude Oil trading range for the day is 4694-6072.
–Crude Oil plunged as a new variant of the coronavirus spooked investors and added to concerns that a supply surplus could swell in the first quarter.
–Oil fell with global equities markets on fears the variant, could dampen economic growth and fuel demand.
–U.S. crude stocks rose last week as refineries hiked output, while gasoline stocks decreased and distillate inventories fell, the Energy Information Administration said.

Courtesy: Kedia Commodities

Source: Comodity Online

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