MCX Zinc under short covering; Support seen at 188.8
MCX Copper under short covering
MCX Nickel under fresh buying; Resistance seen at 823.4
MCX Aluminium under fresh buying; Support seen at 138.5
MCX Mentha Oil under long liquidation
Technically Crude Oil is getting support at 3967 and below same could see a test of 3863 levels and resistance is now likely to be seen at 4164, a move above could see prices testing 4257.
Crude Oil dropped as investors weighed up the effectiveness of a potential cut in supply from OPEC and possibly other exporters in the face of rapidly rising global output.
The Organisation of the Petroleum Exporting Countries (OPEC), de facto led by Saudi Arabia, is pushing for the producer cartel and its allies to cut 1 million to 1.4 million barrels per day (bpd) of supply to adjust for a slowdown in demand growth and prevent oversupply.
Russian Energy Minister Alexander Novak said that Russia, which is not an OPEC member, planned to sign a partnership agreement with the group, and that details would be discussed at OPEC’s Dec. 6 meeting in Vienna. The French bank said this was due to “sizeable” losses in Iranian exports expected because of U.S. sanctions against Tehran and because of risks of disruptions in Venezuela and also Libya and Nigeria.
Despite the gains, crude prices remain almost a quarter below their recent peaks in early October, weighed down by surging supply and a slowdown in demand growth. This comes as supply in the United States is surging, with crude oil production up by almost a quarter this year, to a record 11.7 million bpd.
Fund managers cut their bullish exposure to crude futures and options to the lowest since around mid-2017 this month. Weekly exchange data shows money managers hold a combined net long position equivalent to around 364 million barrels of U.S. and Brent crude futures and options, down from over 800 million barrels two months ago.
Trading Ideas:
–Crude oil trading range for the day is 3863-4257.
–Crude Oil dropped as investors weighed up the effectiveness of a potential cut in supply from OPEC and possibly other exporters in the face of rapidly rising global output.
–Russian Energy Minister Novak says plans to sign OPEC partnership deal
–OPEC led by Saudi Arabia, is pushing for the producer cartel and its allies to cut 1 million to 1.4 mbpd of supply to adjust for a slowdown in demand growth.
Courtesy: Kedia Commodities
Source: Commodityonline.com
