Zinc market under fresh selling; Support seen at 174.6
MCX Copper may trade in a range between 416.8-428.4
MCX Copper may trade in a range between 416.8-428.4
Natural Gas market under fresh selling; Support seen at 190.5
Silver market under short covering; Support seen at 39164
Technically Crude Oil market is under long liquidation as market has witnessed drop in open interest by 24.88% to settled at 13307 while prices down 120 rupees.
Now MCX Crude Oil is getting support at 4714 and below same could see a test of 4647 levels and resistance is now likely to be seen at 4871, a move above could see prices testing 4961.
Crude Oil on MCX settled down 2.45% at 4780 as the market shrugged off a warning that spare capacity may be stretched as OPEC and Russia increase production.
Oil prices were on the back foot for most of the session as Libya’s National Oil Corp (NOC) said it would reopen four oil export terminals, denting some the supply-risk premium which had underpinned the recent run-up in oil prices.
The International Energy Agency, however, raised expectations for a global shortage in crude supplies as the energy watchdog warned of a potential capacity crunch amid a rise in output from Middle East Gulf countries and Russia.
“Rising production from Middle East Gulf countries and Russia, welcome though it is, comes at the expense of the world’s spare capacity cushion, which might be stretched to the limit,” the Paris-based agency said in its monthly report.
Saudi Arabia increased production by 430,000 barrels a day in June, the IEA said. That, however, was offset somewhat by falling Iranian exports, as European traders trimmed their imports ahead of U.S. sanctions on Tehran, which come into effect in November.
“In June, Iran’s crude exports fell back by about 230,000 barrels a day, albeit from a relatively high level in May, as European purchases dropped by nearly 50%,” the agency said. Also stemming losses in oil prices were reports of ongoing declines in inventories at the Cushing, Okla. delivery hub.
Trading Ideas:
–Crude Oil trading range for the day is 4647-4961.
–Crude oil dropped as the market shrugged off a warning that spare capacity may be stretched as OPEC and Russia increase production.
–The International Energy Agency (IEA), which said the world’s oil supply cushion “might be stretched to the limit” due to production losses.
–An escalating U.S.-China trade row also helped depress oil prices as it raised the prospect of faltering global growth and lower energy consumption.
Courtesy: Kedia Commodities
Source: Commodityonline.com
