MCX Zinc expected to trade in a range between 181.2-193.2
MCX Copper likely to trade in a range between 425.8-453.6
MCX Natural Gas likely to trade between 293.9-343.1 range
MCX Nickel expected to trade between 773.2-814.4 levels
MCX Aluminium likely to move in a range of 136.8-140
Technically now Crude oil is getting support at 3748 and below same could see a test of 3641 levels and resistance is now likely to be seen at 4040, a move above could see prices testing 4225.
Crude Oil on MCX settled down 5.31% at 3854 as markets became increasingly worried that supply will outstrip waning demand and OPEC reportedly remained undecided on the size of a production cut.
Investors remained on edge, with the International Energy Agency (IEA) warning of unprecedented uncertainty in oil markets due to a difficult economic environment and political risk.
A report by the American Petroleum Institute that U.S. commercial crude oil inventories had fallen unexpectedly by 1.5 million barrels, to 439.2 million barrels, in the week to Nov. 16. Record crude imports by India of almost 5 million barrels per day (bpd) also supported prices, traders said.
With output surging and the demand outlook deteriorating, the Organization of the Petroleum Exporting Countries (OPEC) is pushing for a supply cut of between 1 million and 1.4 million bpd in a bid to prevent a repeat of the 2014 glut, when a production overhang resulted in a price crash.
U.S. crude oil production C-OUT-T-EIA has jumped by almost a quarter this year, to a record 11.7 million bpd largely thanks to a surge in shale output. Despite an expectation of OPEC-led cuts, Brent and WTI prices have slumped by 28 and 30 percent respectively since early October, and the entire structure of the forward price curve has changed.
Investors remain concerned that a global economic slowdown will dampen demand even as key producers — mainly the U.S., Saudi Arabia and Russia — continue to ramp up production. According to the oilfield services firm Baker Hughes, the U.S. rig count rose by 2 to 888 last week, the highest level since March 2015.
Trading Ideas:
–Crude oil trading range for the day is 3641-4225.
–Crude oil dropped as markets became increasingly worried that supply will outstrip waning demand and A report by the American Petroleum Institute that U.S. commercial crude oil inventories had fallen unexpectedly by 1.5 million barrels, to 439.2 million barrels
–OPEC reportedly remained undecided on the size of a production cut.
–U.S. crude oil production has soared by almost 25 percent this year, to a record 11.7 million barrels per day (bpd).
Courtesy: Kedia Commodities
Source: Commodityonline.com
