MCX Copper may trade between 418.1-437.1 levels
Natural Gas market under fresh selling; Support seen at 190.9
Silver market under fresh selling; Support seen at 38069
MCX Cotton under fresh buying; Support seen at 23954
Gold market under fresh selling; Support seen at 29747
Technically now Crude Oil is getting support at 4685 and below same could see a test of 4636 levels and resistance is now likely to be seen at 4799, a move above could see prices testing 4864.
Crude Oil on MCX settled down 1.87% at 4734 as concerns surrounding Iranian oil eased and traders’ attention started to shift to weekly data on U.S. petroleum inventories. Iranian officials reportedly rejected the proposal, preferring Trump to first make up for pulling the United States out from the multilateral nuclear deal.
The nuclear trade deal had lifted sanctions on Iran in exchange for regular inspections of the country’s nuclear facilities. Data from the American Petroleum Institute showed domestic crude inventories rose by 5.6 million barrels last week.
Signs that a supply disruption in the Bab al-Mandeb Strait in the Red Sea could be resolved also weighed on prices. Yemen’s Houthi group said it was ready to unilaterally halt attacks in the Red Sea to support peace efforts. Saudi Arabia suspended oil shipments through the strait last week after the Houthis attacked two Saudi oil tankers.
At the same time, the Organization of the Petroleum Exporting Countries has boosted output on higher production by Kuwait, Saudi Arabia, the United Arab Emirates and Nigeria, analysts at Commerzbank noted.
OPEC and other major producers, including Russia, agreed in June to raise output in an effort to make up for lost barrels from countries like Venezuela and Iran, while remaining within output curbs they previously agreed to, which have been credited with helping to work off a global glut of crude oil.
OPEC has pledged to offset the loss of supply from Iran, the group’s third-biggest producer. Looming U.S. sanctions have already started to cut Iranian exports, with buyers from its biggest customers in Asia cutting imports to a seven-month low in June
Trading Ideas:
–Crude Oil trading range for the day is 4636-4864.
–Crude Oil dropped as easing expectations for steep losses of Iranian crude offset data expected to show U.S. oil stockpiles fell for the second-straight week.
–Pressure also seen as oversupply concerns rose after a Reuters survey showed OPEC output rose in July to its highest for 2018.
–The survey showed OPEC increased production 70,000 barrels per day (bpd) to 32.64 million bpd in July, the most this year.
Courtesy: Kedia Commodities
Source: Commodityonline.com
