Natural Gas market under long liquidation; Support seen at 266.9
MCX Silver may trade in a range between 36257-37017
Gold market under fresh selling; Support seen at 30715
MCX Mentha Oil under short covering
MCX Cotton under fresh buying; Resistance seen at 22380
Technically Crude Oil market is under long liquidation as market has witnessed drop in open interest by -12.74% to settled at 9278 while prices down 19 rupees.
Now Crudeoil is getting support at 4015 and below same could see a test of 3959 level, And resistance is now likely to be seen at 4123, a move above could see prices testing 4175.
Crude Oil on MCX settled down 0.46% at 4070 as concern over the prospect of an oversupplied market next year continued to weigh on prices despite OPEC’s message that it may cut crude output.
The Organization of the Petroleum Exporting Countries (OPEC), led by Saudi Arabia, is considering a cut of up to 1.4 million barrels per day (bpd) next year to avoid the kind of build in global inventories that prompted the oil price to crash between 2014 and 2016.
The International Energy Agency (IEA) and OPEC warned of a sizeable surplus at least in the first half of 2019, and possibly beyond, given the pace of growth in non-OPEC production and slower demand in heavy consumers such as China and India.
The oil price has lost about a quarter of its value in only six weeks, pressured by a slowing global economy and soaring crude output led by the United States. The American Petroleum Institute said that crude inventories rose by 8.8 million barrels in the week to Nov. 9 to 440.7 million, compared with expectations for an increase of 3.2 million barrels.
Meanwhile, the Washington-based Energy Information Administration (EIA) said nearly 38 million barrels had been added to crude inventories in the U.S. in the past seven weeks.
Total U.S. crude production, meanwhile, stands at a record 11.6 million bpd, making the country the world’s biggest oil producer ahead of Russia and Saudi Arabia.
Trading Ideas:
–Crude Oil trading range for the day is 3959-4175.
–Crude oil dropped as concern over the prospect of an oversupplied market next year continued to weigh on prices.
–OPEC led by Saudi Arabia, is considering a cut of up to 1.4 mbpd next year to avoid the kind of build in global inventories that prompted the oil price to crash.
–The EIA data showed that crude oil inventories increased by 10.27 million barrels in the week to November 9.
Courtesy: Kedia Commodities
Source: Commodityonline.com
