MCX Zinc under Fresh buying; Support seen at 186.3
Short covering seen in MCX Copper; Resistance seen at 455.8
MCX Natural Gas under long liquidation
MCX Nickel under fresh buying; Resistance seen at 924.8
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Technically Crude Oil market is under fresh buying as market has witnessed gain in open interest by 22.83% to settled at 20490 while prices up 96 rupees.
Now MCX Crude Oil is getting support at 5252 and below same could see a test of 5169 level, And resistance is now likely to be seen at 5387, a move above could see prices testing 5439.
Crude Oil on MCX settled up 1.83% at 5335 as U.S. sanctions on Tehran squeezed Iranian crude exports, tightening supply even as other key exporters increased production.
The sanctions on Iran, the Organization of the Petroleum Exporting Countries (OPEC) third-largest producer, start 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.
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Concerns around the sanctions also led to a widening difference between WTI and Brent prices as it created positive conditions for U.S. oil exports.
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 OPEC and non-OPEC producers.
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 5169-5439.
–Crude Oil gained as U.S. sanctions on Tehran squeezed Iranian crude exports, tightening supply even as other key exporters increased production.
–Concerns around the sanctions also led to a widening difference between WTI and Brent prices as it created positive conditions for U.S. oil exports.
–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.
Courtesy: Kedia Commodities
Source: Commodityonline.com
