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Monday, May 23, 2022

MCX Crude Oil under short covering; Support seen at 5240

Technically Crude Oil market is under short covering as market has witnessed drop in open interest by 31.37% to settled at 5427 while prices up 157 rupees,

Now MCX Crude Oil is getting support at 5240 and below same could see a test of 5136 levels, and resistance is now likely to be seen at 5468, a move above could see prices testing 5592.

Crude Oil yesterday settled up by 3.03% at 5343 as traders look ahead to some meetings of the Organization of the Petroleum Exporting Countries, scheduled to take place this week.

The Omicron coronavirus variant spread around the world on Sunday, with new cases found in the Netherlands, Denmark and Australia even as more countries imposed travel restrictions.

The World Health Organization (WHO) said it was not yet clear whether Omicron, first detected in Southern Africa, is more transmissible or dangerous than other variants.

OPEC and its allies have postponed technical meetings to later this week, giving themselves more time to assess the impact of the new Omicron coronavirus variant on oil demand and prices.

Before Friday, OPEC had already predicted the surplus would grow steeply after the United States and other major consumers decided to released oil stocks to help cool down prices. OPEC+ has been releasing 400,000 barrels per day of oil per month while winding down its record cuts from last year.

Russia sees no need for urgent measures on the oil market, TASS cited Deputy Prime Minister Alexander Novak as saying. Novak said OPEC+ partners had not asked for a renegotiation to a deal on output in response to the spread of the Omicron variant, news agencies reported.

Trading Ideas:
–Crude Oil trading range for the day is 5136-5592.
–Crude Oil prices gained as traders look ahead to some meetings of the Organization of the Petroleum Exporting Countries, scheduled to take place this week.
–Russia’s Novak says no need for urgent measures on oil market – TASS.
–OPEC has warned U.S. stocks release to swell surplus.

Courtesy: Kedia Commodities

Source: Comodity Online

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