MCX Zinc under long liquidation; Support seen at 185
MCX Nickel likely to move in a range of 952.9-999.5
Natural Gas may trade between 193.2-200.6 levels
MCX Mentha Oil under fresh buying; Resistance seen at 1363.6
MCX Aluminium under fresh buying; Support seen at 143
Technically now Crude Oil is getting support at 4990 and below same could see a test of 4942 levels and resistance is now likely to be seen at 5122, a move above could see prices testing 5206.
Crude Oil on MCX settled down 1.7% at 5039 after the report from Wall Street Journal which raised doubts over the initial public offering of Saudi Arabia’s state oil company, known as Aramco.
While Nymex Crude oil prices end at lowest in a week fell $1.20 to settle at $72.94 a barrel. It was trading at just over $74 before the supply data and saw its lowest finish since June 27 on surprise climb in domestic crude supplies.
Trader had said that the IPO was at least part of the reason that the Saudis were pushing for higher oil prices by agreeing to production cuts that began in 2017. Prices were already trading lower in the wake of the EIA report Thursday that showed crude stockpiles rose by 1.2 million barrels for the week ended June 29.
The data, which were released a day later than usual because of Wednesday Independence Day holiday, marked the first increase since the week ended June 1.
Meanwhile, Trump on Wednesday again complained via Twitter about rising gas prices and demanded that OPEC, “REDUCE PRICING NOW!”. The tweet comes after Trump on Saturday tweeted that Saudi Arabia’s King Salman had agreed to increase output by 2mbpd.
A senior Saudi Arabia official told that no specific promise had been made over production, but rather assurances were given that the country had the capacity to meet demand.
OPEC and its major producer allies, namely Russia, had agreed in a June meeting to effectively raise output by 1mbls a day to help counteract lost barrels from Venezuela and Iran.
Trading Ideas:
–Crude Oil trading range for the day is 4942-5206.
–Crude oil prices settled lower as a ramp up in imports led to an unexpected build in U.S. crude supplies, despite ongoing supply outages.
–Crude oil stocks rose by 1.2 million barrels in the week to June 29, to 417.88 million barrels, according to the U.S. Energy Administration (EIA).
–U.S. President Donald Trump sent a strident tweet demanding that OPEC cut prices for crude.
Courtesy: Kedia Commodities
Source: Commodityonline.com
