MCX Natural Gas likely to move in a range of 237.4-252.6
MCX Copper likely to move in a range of 454.1-466.7
MCX Zinc under long liquidation
MCX Nickel likely to move in a range of 928.6-968.2
MCX Aluminium may trade between 150-154.4 levels
Technically MCX Crude Oil is getting support at 5386 and below same could see a test of 5319 level, And resistance is now likely to be seen at 5548, a move above could see prices testing 5643.
Crude Oil on MCX settled down 2.15% at 5454 drifted lower in yesterday’s session amid prospects of a drop in crude demand due to weak global economic growth outlook.
With the International Monetary Fund lowering its forecast for global economic growth to 3.7%, from its earlier projection of 3.9%, and lowering Chinese economic growth 6.2% from 6.4%, for the current financial year, traders are betting on hopes crude oil demand will see a drop in the near term.
Escalating tensions between the U.S. and China too have raised concerns that global oil demand will decline in the near term. Crude oil prices eased despite reports that Hurricane Michael crashed into the Florida’s northwestern Panhandle coast today, flooding towns and ripping up trees with 155 mile per hour winds.
Due to platform evacuations and shut downs ahead of the Hurricane Michael, it is reported that more than one-third of natural gas output from the offshore U.S. Gulf of Mexico wells has been lost.
Prices had seen further pressure after the US crude stockpiles rose more than expected last week, while gasoline inventories increased and distillate stocks drew, industry group the API said on Wednesday.
Crude inventories climbed by 9.7mbls in the week to Oct. 5 to 410.7 million, compared with expectations for an increase of 2.6 million barrels. Crude stocks at the Cushing, Oklahoma, delivery hub rose by 2.2mbls, API said.
While the US EIA is due to release official government inventory data Thursday. Some data to monitor today include China’s total social financing (TSF) and M2 money supply in September, US consumer inflation in September, weekly jobless claims.
Trading Ideas:
–Crude Oil trading range for the day is 5319-5643.
–Crude Oil dropped after the IMF lowered its global growth forecasts.
–U.S. crude stockpiles rose more than expected last week, while gasoline inventories increased and distillate stocks drew, API data showed.
–Crude inventories climbed by 9.7 million barrels in the week to Oct. 5 to 410.7 million, compared with expectations for an increase of 2.6 million barrels.
Courtesy: Kedia Commodities
Source: Commodityonline.com
