Silver market under short covering; Support seen at 38460
Gold market under short covering; Support seen at 31210
MCX Natural Gas under long liquidation
MCX Copper likely to move in a range of 451.9-469.3
MCX Zinc may trade between 195.9-207.7 levels
Technically Crude Oil market is under short covering as market has witnessed drop in open interest by -1.71% to settled at 15613 while prices up 80 rupees.
Now MCX Crude Oil is getting support at 5509 and below same could see a test of 5445 levels and resistance is now likely to be seen at 5616, a move above could see prices testing 5659.
Crude Oil on MCX settled up 1.46% at 5574 as more evidence emerged that crude exports from Iran, are declining in the run-up to the re-imposition of U.S. sanctions. The International Monetary Fund downgraded its global economic growth forecasts for 2018 and 2019 on Tuesday, potentially tempering demand for oil and its products.
Trade tensions and rising import tariffs were taking a toll on commerce, while emerging markets struggle with tighter financial conditions and capital outflows, the IMF said.
In the United States, nearly 40 percent of daily crude oil production was lost from offshore U.S. Gulf of Mexico wells on Tuesday because of platform evacuations and shut-ins ahead of Hurricane Michael. Oil producers evacuated personnel from 75 platforms as the storm made its way through the central Gulf on the way to landfall on Wednesday on the Florida Panhandle.
The country’s largest privately owned crude terminal, the Louisiana Offshore Oil Port LLC, said late on Tuesday it had halted operations at its marine terminal. Industry and government data on U.S. crude inventories will be delayed by one day this week because of Monday’s U.S. Columbus Day holiday.
The American Petroleum Institute is due to release data on Wednesday, while the U.S. Energy Information Administration is due to publish on Thursday.
Trading Ideas:
–Crude oil trading range for the day is 5445-5659.
–Crude oil gained as more evidence emerged that crude exports from Iran, are declining in the run-up to the re-imposition of U.S. sanctions.
–Iran’s crude exports fell further in the first week of October, as buyers are seeking alternatives ahead of the start of the U.S. sanctions on Nov. 4.
–Iran’s Oil Minister Bijan Zanganeh called a Saudi claim that the kingdom could replace Iran’s crude exports “nonsense.”
Courtesy: Kedia Commodities
Source: Commodityonline.com
