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Thursday, February 22, 2024

MCX Crude Oil under short covering; Support seen at 5326

Technically Crude Oil market is under short covering as market has witnessed drop in open interest by 0.31% to settled at 2919 while prices up 46 rupees.

Now MCX Crude Oil is getting support at 5326 and below same could see a test of 5257 levels, and resistance is now likely to be seen at 5434, a move above could see prices testing 5473.

Crude Oil yesterday settled up by 0.86% at 5394 as U.S. crude stocks, gasoline and distillate inventories fell last week, the Energy Information Administration said.

Crude inventories fell by 4.6 million barrels in the week to Dec. 10 to 428.3 million barrels, compared with expectations for a 2.1 million-barrel drop.Crude stocks at the Cushing, Oklahoma, delivery hub rose by 1.3 million barrels in the last week, EIA said.

Refinery crude runs fell by 115,000 barrels per day in the last week, EIA said. Refinery utilization rates was unchanged in the week. U.S. gasoline stocks fell by 719,000 barrels in the week to 218.6 million barrels, the EIA said, compared with expectations poll for a 1.6 million-barrel rise.

Distillate stockpiles , which include diesel and heating oil, fell by 2.9 million barrels in the week to 123.8 million barrels, versus expectations for a 688,000-barrel rise, the EIA data showed.

A surge in COVID-19 cases and the emergence of the Omicron variant will dent global demand for oil, the International Energy Agency (IEA) said, but the broader picture is one of increasing output set to top demand this month and soar next year.

“The surge in new COVID-19 cases is expected to temporarily slow, but not upend, the recovery in oil demand that is underway,” the Paris-based IEA said in its monthly oil report.

Trading Ideas:
–Crude Oil trading range for the day is 5257-5473.
–Crude Oil prices gained as U.S. crude stocks, gasoline and distillate inventories fell last week.
–Crude inventories fell by 4.6 million barrels in the week to Dec. 10 to 428.3 million barrels.
–Crude stocks at the Cushing, Oklahoma, delivery hub rose by 1.3 million barrels in the last week, EIA said.

Courtesy: Kedia Commodities

Source: Comodity Online

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