Copper market under long liquidation; Support seen at 444.5
Natural Gas market under fresh buying; Support seen at 218.1
Silver market under fresh selling; Support seen at 37320
MCX Nickel likely to move in a range of 889.3-933.7
MCX Aluminium may trade between 144.4-149.6 levels
Technically Crude Oil is getting support at 5207 and below same could see a test of 5174 levels and resistance is now likely to be seen at 5278, a move above could see prices testing 5316.
Crude Oil on MCX settled up 0.52% at 5239 as investors focused on the prospect of tighter markets due to U.S. sanctions against major crude exporter Iran, which are set to be implemented in November.
The sanctions kick in on Nov. 4, with Washington asking buyers of Iranian oil to cut imports to zero to force Tehran to negotiate a new nuclear agreement and to curb its influence in the Middle East.
Saudi Arabia is expected to quietly add extra oil to the market over the next couple of months to offset the drop in Iranian production, but is worried it might need to limit output next year to balance global supply and demand as the United States pumps more crude.
Two sources familiar with OPEC policy said Saudi Arabia and other producers discussed a possible production increase of about 500,000 barrels per day (bpd) among the Organization of the Petroleum Exporting Countries and non-OPEC allies.
At its 2018-peak in May, Iran exported 2.71 million bpd, nearly 3 percent of daily global crude consumption. Headlines over the past three months have repeatedly raised the possibility of President Donald Trump tapping the SPR to lower current market and pump prices for gasoline and the president has not publicly refuted the reports.
In its weekly report the Energy Information Administration said U.S. crude production hit a record 11.1 million barrels per day last week. Crude oil inventories?recorded a build of 1.85 million barrels to 395.99 million barrels last week, the EIA data showed, compared to expectations for a drawdown of 1.27 million barrels.
Trading Ideas:
–Crude Oil trading range for the day is 5174-5316.
–Crude oil gained as investors focused on the prospect of tighter markets due to U.S. sanctions against major crude exporter Iran, which are set to be implemented in November.
–At its 2018 peak, Iran exported around 3 million barrels per day (bpd) of crude oil, equivalent to 3 percent of global consumption.
–Shipping data shows Iran September exports fell to around 2 million bpd as buyers around the world bow to U.S. pressure and cut imports.
Courtesy: Kedia Commodities
Source: Commodityonline.com
