MCX Mentha Oil under fresh selling; Support seen at 1787.3
Zinc market under short covering; Support seen at 188.8
Copper market under short covering; Support seen at 436.6
Natural Gas likely to trade in a range between 266.7-328.9
Silver market under short covering; Support seen at 36729
Technically Crude Oil market is under fresh buying as market has witnessed gain in open interest by 94.82% to settled at 13059 while prices up 5 rupees.
Now Crude Oil is getting support at 4039 and below same could see a test of 3969 levels and resistance is now likely to be seen at 4192, a move above could see prices testing 4275.
Crude Oil on MCX settled up 0.12% at 4109 supported by expected supply cuts from OPEC but held back by record U.S. production.
Prices were mainly supported by expectations the Organization of the Petroleum Exporting Countries (OPEC) would start withholding supply soon, fearing a renewed rout such as in 2014 when prices crashed under the weight of oversupply.
U.S. crude oil production has hit a fresh record of 11.7 million barrels per day, that’s resulted in swelling commercial crude inventories. While OPEC considers withholding supply, U.S. crude oil production reached another record last week, at 11.7 million barrels per day (bpd), according to U.S. Energy Information Administration (EIA) data.
U.S. output has surged by almost a quarter since the start of the year. The record output meant U.S. crude oil stocks posted the biggest weekly build in nearly two years.
Crude inventories soared 10.3 million barrels in the week to Nov. 9 to 442.1 million barrels, the highest level since early December 2017. This surge contributed to oil prices falling by around a quarter since early October, taking many by surprise.
The Saudis have the power to rescue this market. They went from announcing a million barrels in cuts initially to 1.4 million barrels over a matter days. There are the stirrings of a reaction coming and no one wants to be caught on the wrong side.
Trading Ideas:
–Crude oil trading range for the day is 3969-4275.
–Crude oil prices remained supported by expected supply cuts from OPEC but held back by record U.S. production.
–Prices were mainly supported by expectations the OPEC would start withholding supply soon, fearing a renewed rout such as in 2014 when prices crashed.
–U.S. crude oil production has hit a fresh record of 11.7 million barrels per day, that’s resulted in swelling commercial crude inventories.
Courtesy: Kedia Commodities
Source: Commodityonline.com
