MCX Nickel may trade between 911.6-946.2 levels
MCX Aluminium likely to move in a range of 141.5-146.3
MCX Mentha Oil under short covering; Support seen at 1655.9
MCX Copper likely to trade between 402.2-416.8 levels
Natural Gas market under fresh buying; Support seen at 206.4
Technically MCX Crude Oil is getting support at 4742 and below same could see a test of 4711 levels and resistance is now likely to be seen at 4796, a move above could see prices testing 4819.
Crude Oil on MCX settled up 0.23% at 4774 recovering from lows as Washington’s sanctions on Iran signaled tightening supplies and amid bullish impact of a decline in U.S. commercial crude inventories.
The United States imposed 25% tariffs on an additional $16 billion of Chinese goods just after Thursday, prompting China to respond with in-kind measures against U.S. goods. That renewed fears of a full-blown U.S. and China trade war, which could not only dent global growth but likely lead to a slowdown in oil demand.
The IEA recently warned “trade tensions might escalate and lead to slower economic growth, and in turn lower oil demand.” This could dent oil prices, the IEA said, as it would alleviate the pressure on already low spare oil capacity amid expectations that U.S. sanctions on Iran will pressure global oil supplies.
President Donald Trump pulled the United States out of the Iran nuclear agreement in May, allowing sanctions against Iran to snap back into place. Crude oil prices are on track to snap a three-week losing streak after rising 3% Wednesday on the back a government data showing a larger-than-expected fall in U.S. crude supplies last week.
Inventories of U.S. crude fell by 5.836 million barrels for the week ended Aug. 17, well above expectations for a draw of 1.497 million barrels, according to data from the EIA. Oil-market observers will likely turn to the Baker Hughes rig count data Friday for signs that U.S. output continues to tighten after data on Wednesday showed U.S. oil output continued to expand.
Trading Ideas:
–Crude Oil trading range for the day is 4711-4819.
–Crude Oil gained recovering from lows as Washington’s sanctions on Iran signaled tightening supplies.
–U.S. commercial crude oil inventories fell by 5.8 million barrels in the week to Aug. 17 to 408.36 million barrels, the EIA said in its weekly report.
–Kuwait is likely to sign deals with Saudi Arabia and Iraq to develop shared oil fields by the end of this year and start producing oil soon.
Courtesy: Kedia Commodities
Source: Commodityonline.com
