MCX Aluminium may trade between 148.6-152.4
MCX Menthol Oil under long liquidation; Support seen at 1677.5
MCX Cotton under short covering; Support seen at 22526.6
MCX Cardamom likely to move in a range of 1357.6-1368
NCDEX Jeera under fresh buying; Resistance seen at 20113
Technically Crude Oil market is under long liquidation as market has witnessed drop in open interest by 16.31% to settled at 8034.
Now MCX Crude Oil is getting support at 5196 and below same could see a test of 5150 levels and resistance is now likely to be seen at 5303, a move above could see prices testing 5364.
Crude Oil on MCX settled down -0.23% at 5243 as pressure seen after the IEA said in its monthly report that the market looked “adequately supplied for now” and trimmed its forecasts for world oil demand growth this year and next.
The International Energy Agency said in its monthly report that the world’s spare oil production capacity was already down to only 2 percent of global demand, with further reductions likely to come.
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“This strain could be with us for some time and it will likely be accompanied by higher prices, however much we regret them and their potential negative impact on the global economy,” the Paris-based IEA said. OPEC Secretary-General Mohammad Barkindo said that oil producers are very concerned about spare output capacity amid a reduction in energy-industry investment.
“We are very concerned,” Barkindo said in response to a question about spare capacity, citing a continued decline in oil industry investment resulting from the market downturn. Barkindo, speaking at the Oil & Money conference in London, said earlier that he wanted to ensure there is no shortage of crude in the market.
U.S. crude inventories rose by 6 million barrels last week, the Energy Information Administration said, more than double expectations of a 2.6 million-barrel increase. The U.S. oil drilling rig count rose for the first time in four weeks, an indication that production is rising. Drillers added eight oil rigs in the week to Oct. 12, bringing the total count to 869.
Trading Ideas:
–Crude oil trading range for the day is 5150-5364.
–Crude oil prices dropped as pressure seen after the IEA said in its monthly report that the market looked “adequately supplied for now”
–OPEC Secretary-General Mohammad Barkindo said that oil producers are very concerned about spare output capacity amid a reduction in energy-industry investment.
–China’s daily crude oil imports in September hit their highest level since May, customs data showed.
Courtesy: Kedia Commodities
Source: Commodityonline.com
