Silver market under fresh selling; Support seen at 37765
MCX Gold likely to trade between 29490-29788 levels
NCDEX Mustard Seed under fresh buying; Support seen at 4127
MCX Crude Palm Oil under short covering
NCDEX Ref.Soya Oil under fresh buying; Resistance seen at 738
Technically Crude Oil market is under long liquidation as market has witnessed drop in open interest by 6.06% to settled at 9579 while prices down 5 rupees.
Now MCX Crude Oil is getting support at 4734 and below same could see a test of 4705 levels and resistance is now likely to be seen at 4795, a move above could see prices testing 4827.
Crude Oil settled flat after prices seen supported amid reports that the U.S. restored sanctions against Iran, the world’s fifth-largest oil producer. Oil prices were also boosted by a report from the Energy Information Administration (EIA), estimating domestic oil production will grow at a slower rate than previously forecast.
The EIA cut its 2018 U.S. crude output estimate to 10.68 million bpd from 10.79 million bpd and its 2019 output estimate to 11.7 million bpd from 11.8 million bpd, citing lower crude prices are expected to curb U.S. shale oil output.
The U.S. government introduced a raft a new sanctions against Iran on Tuesday, targeting Iran’s purchases of U.S. dollars – in which oil is traded – metals trading, coal, industrial software and its auto sector. From November, Washington will also target Iran’s petroleum sector.
Iran is a major exporter of crude oil, shipping out almost 3 million barrels per day (bpd) of crude in September, equivalent to around 3 percent of global demand. Beyond the sanctions, the oil market was focusing on the U.S. market, where the American Petroleum Institute said on Tuesday that crude inventories fell by 6 million barrels in the week to Aug. 3 to 407.2 million.
Official U.S. fuel storage data is due to be released later on Wednesday by the Energy Information Administration (EIA).
Trading Ideas:
–Crude Oil trading range for the day is 4705-4827.
–Crude oil settled flat after prices seen supported amid reports that the U.S. restored sanctions against Iran, the world’s fifth-largest oil producer.
–Oil prices were also boosted by a report from EIA, estimating domestic oil production will grow at a slower rate than previously forecast.
–The EIA cut its 2018 U.S. crude output estimate to 10.68 mbpd from 10.79 million bpd and its 2019 output estimate to 11.7 mbpd from 11.8 mbpd.
Courtesy: Kedia Commodities
Source: Commodityonline.com
