Silver market is under long liquidation; Support seen at 38054
MCX Gold may trade in a range between 31640-32136
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MCX Crude Palm Oil under long liquidation
Technically Crude Oil market is under long liquidation as market has witnessed drop in open interest by 4.44% to settled at 14411 while prices down 12 rupees.
Now Crude Oil is getting support at 3674 and below same could see a test of 3593 levels and resistance is now likely to be seen at 3818, a move above could see prices testing 3881.
Crude oil recovered losses as risk assets recovered their appeal and a supply outage in Libya continued to support prices ahead of U.S. inventory data.
The Organization of the Petroleum Exporting Countries and some non-OPEC producers, including heavyweight Russia, said they would cut oil supply by 1.2 million barrels per day (bpd) from January.
A steep increase in the pace of crude supply growth this year, especially in the world’s three largest producers – the United States, Saudi Arabia and Russia – has made a number of analysts wary about the prospect of demand being sufficient to mop up extra oil.
Energy Minister Alexander Novak said that Russia would cut oil output gradually as part of a deal struck last week between OPEC and non-OPEC producers and that there would be no sharp moves.
Novak told reporters that Russia was on track to reduce production by at least 50,000-60,000 barrels per day in January and that subsequent cuts would depend on technology and climate, but continue at least the same level.
Hedge funds and other money managers cut their bullish wagers on crude to the lowest in more than two years in the week ending Dec. 4, the U.S. Commodity Futures Trading Commission (CFTC) said.
The speculator group cut its combined futures and options position in New York and London by 25,619 contracts to 144,775 during the period. The level is the lowest since Sept. 20, 2016.
Trading Ideas:
–Crude Oil trading range for the day is 3593-3881.
–Crude oil recovered losses as risk assets recovered their appeal and a supply outage in Libya continued to support prices ahead of U.S. inventory data.
–Energy Minister Novak said that Russia would cut oil output gradually as part of a deal struck last week between OPEC and non-OPEC producers.
–Novak told reporters that Russia was on track to reduce production by at least 50,000-60,000 barrels per day in January.
Courtesy: Kedia Commodities
Source: Commodityonline.com
