MCX Copper may trade between 418.7-430.1 levels
Natural Gas market under fresh buying; Support seen at 191.5
Short covering seen in MCX Cotton
MCX Cardamom under long liquidation
NCDEX Jeera under short covering; Support seen at 19730
Technically Crude Oil market is under fresh buying as market has witnessed gain in open interest by 41.43% to settled at 11995.
Now Crude Oil is getting support at 4742 and below same could see a test of 4659 levels and resistance is now likely to be seen at 4875, a move above could see prices testing 4925.
Crude Oil on MCX settled up 2.33% at 4824 on expectations that U.S. inventories fell last week and worries that an outage at a Syncrude facility in Canada will not be solved as soon as expected. Concerns about the prospect of an oil supply shortage returned Monday, as investors continued to weigh supply disruptions in Saudi Arabia and declining output from and Venezuela, Iran and Libya.
Saudi Arabia announced it would suspend shipments of oil through the key Bab el-Mandeb Strait, after Houthi rebels in Yemen attacked a pair of oil tankers in the Red Sea. The fall in Iran crude flows come as U.S. sanctions, which come into effect in early November, are expected to cripple the Islamic Republic’s energy industry, wiping a significant amount of crude supply from the market.
A Reuters survey showed the Organization of the Petroleum Exporting Countries increased production in July. OPEC hiked production by 70,000 barrels per day to 32.64 million bpd, a 2018 high.
Further supply increases could offset production outages and pressure prices. Crude inventories at the Oklahoma, delivery point for WTI have been dwindling, in part due to the Syncrude outage that has reduced the flow of oil into the hub.
Stocks at the Cushing storage hub fell to 23.7 million barrels, the lowest since November 2014 in the week to July 20. Energy information company Genscape, however, said that inventories at Cushing rose almost 200,000 barrels, or nearly 1 percent, from Tuesday to Friday last week.
Trading Ideas:
–Crude oil trading range for the day is 4659-4925.
–Crude oil prices ended with gains as investor concerns over global crude supply supported sentiment.
–Saudi Arabia said it was temporarily halting all oil shipments through the Red Sea shipping lane of?Bab al-Mandeb after an attack on two big oil tankers.
–U.S. energy companies added three oil rigs in the week to July 27, the first time in the past three weeks that drillers have increased activity.
Courtesy: Kedia Commodities
Source: Commodityonline.com
