MCX Nickel under long liquidation; Resistance seen at 771.6
Long liquidation seen in MCX Aluminium; Support seen at 135.8
MCX Mentha Oil under short covering; Resistance Seen at 1680
Silve market under long liquidation; Support seen at 35724
Gold market under long liquidation; Support seen at 30422
Technically now Crude Oil is getting support at 3530 and below same could see a test of 3436 levels and resistance is now likely to be seen at 3762, a move above could see prices testing 3900.
Crude Oil on MCX settled down 5.23% at 3623 weighed down by concerns that producers are churning out more oil than the world needs amid a bleak economic outlook. Oil supply has surged this year, with the top-three producers of the United States, Russia and Saudi Arabia pumping out more than a third of global consumption, which stands around 100 million barrels per day (bpd).
Oil supply, led by the United States, is growing more quickly than demand and to ward off a build-up of unused fuel such as the one that emerged in 2015, the Organization of the Petroleum Exporting Countries is expected to start withholding output after a meeting planned for Dec. 6.
Volatility has spiked to its highest since late 2016, as investors have rushed to buy protection against further steep price declines. Volatility, a measure of investor demand for a particular option, has jumped above 60 percent for very bearish near-term sell options, double what it was two weeks ago.
Global oil supply has surged this year. The International Energy Agency expects non-OPEC output alone to rise by 2.3 million bpd this year, up from its forecast six months ago of 1.8 million bpd. Demand next year meanwhile is expected to grow at a rate of 1.3 million bpd, compared with a forecast of 1.5 million bpd six months ago.
Adjusting to lower demand, top crude exporter Saudi Arabia said that it may reduce supply as it pushes OPEC to agree to a joint output cut of 1.4 million bpd.
Trading Ideas:
–Crude Oil trading range for the day is 3436-3900.
–Crude oil dropped weighed down by concerns that producers are churning out more oil than the world needs amid a bleak economic outlook.
–U.S. crude oil production has jumped by almost a quarter this year, to a record 11.7 million bpd largely because of a surge in shale output.
–Oil supply has surged this year, with the top-three producers of the United States, Russia and Saudi Arabia pumping out more than a third of global consumption.
Courtesy: Kedia Commodities
Source: Commodityonline.com
