MCX Copper likely to trade between 390-415.2 levels
Natural Gas market under fresh selling; Support seen at 201.9
MCX Nickel under short covering
MCX Aluminium may trade between 123.6-132 levels
MCX Mentha Oil under fresh buying; Resistance seen at 1587.4
Technically Crude Oil market is under long liquidation as market has witnessed drop in open interest by 3.12% to settled at 20921 while prices down 43 rupees.
Now MCX Crude Oil is getting support at 3212 and below same could see a test of 3138 levels and resistance is now likely to be seen at 3350, a move above could see prices testing 3414.
Crude Oil on MCX settled down 1.29% at 3285 while prices recovered from the day’s low on hopes the proposed reduction in oil output by OPEC and some of its allies will help allay fears about excess supply in the market.
Crude oil’s rise was also supported by reports that Libya’s oil exports have been suspended after bad weather conditions forced the country to shut all its export terminals. However, the latest data showing a contraction in Chinese manufacturing activity and disappointing report on U.S. manufacturing activity in the month of December raised concerns about global economic growth and energy demand and limited oil’s gains.
The dollar’s weakness and the sell-off in stock markets after Apple lowered its revenue forecast for the first quarter of 2019 also weighed on crude oil. According to a survey, OPEC oil supply fell in December by the largest amount in almost two years, as top exporter Saudi Arabia cut supply.
Iran and Libya are reported to have posted involuntary declines. Now the market will be on the lookout for weekly snapshot on U.S. oil supply-demand for the week ended Dec. 28, ahead of official data on Friday from the EIA. The EIA is expected to announce a drop of 3.1mbls in U.S.crude inventories last week, after the previous week’s slide of less than 50,000 barrels.
Trading Ideas:
–Crude oil trading range for the day is 3138-3414.
–Crude oil dropped amid an economic slowdown for 2019 just as crude supplies are rising globally.
–U.S. crude production stood at a record 11.7 million barrels per day (bpd) in late 2018, making America the world’s biggest oil producer.
–Others are not sitting idle, with Russian output reaching a record of more than 11 million bpd in 2018.
Courtesy: Kedia Commodities
Source: Commodityonline.com
