Natural Gas market under short covering; Support seen at 227.8
Silver market under fresh buying; Support seen at 39358
Gold market under short covering; Support seen at 32004
MCX Aluminium likely to move in a range of 126.5-130.7
MCX Mentha Oil under fresh selling; Support seen at 1567.4
Technically Crude Oil market is under fresh selling as market has witnessed gain in open interest by 3.72% to settled at 12095 while prices down 4 rupees.
Now MCX Crude Oil is getting support at 3580 and below same could see a test of 3531 levels and resistance is now likely to be seen at 3674, a move above could see prices testing 3719.
Crude oil dropped after Chinese data showed weakening imports and exports in the world’s biggest trading nation and second-largest crude oil consumer.
Despite the weak Chinese trade data, the country’s oil imports remained sky-high in December at 10.31 million barrels per day (bpd), holding above the 10 million bpd mark for the second month in a row, on stockbuilding by small independent refiners who were trying to use up annual quotas.
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Amid this strong demand from the world’s biggest oil importer, the Organization of the Petroleum Exporting Countries (OPEC) and some non-OPEC allies, including Russia, have been cutting supply since late 2018, providing crude prices with some support.
In the United States, drillers cut four oil rigs in the week to Jan. 11, bringing the total count down to 873, energy services firm Baker Hughes said in a weekly report. Saudi Arabian Energy Minister Al-Falih was on the wires last minutes, confirming that he will attend the OPEC and its allies (OPEC+) meeting likely to be held in Baku, the capital of Azerbaijan.
However, he did not provide any data for the OPEC+ Baku meeting. Al-Falih added that the OPEC+ will meet commitments to cut output. Saudi Arabia-led OPEC and its non-member allies led by Russia agreed to collectively cut production by a total of 1.2 million barrels per day (bpd) during the first six months of 2019 in an effort to stave off a global glut in supplies.
Trading Ideas:
–Crude Oil trading range for the day is 3531-3719.
–Crude Oil dropped after Chinese data showed weakening imports and exports in the world’s biggest trading nation and second-largest crude oil consumer.
–Despite the weak Chinese trade data, the country’s oil imports remained sky-high in December at 10.31 million barrels per day (bpd).
–The OPEC and some non-OPEC allies, including Russia, have been cutting supply since late 2018, providing crude prices with some support.
Courtesy: Kedia Commodities
Source: Commodityonline.com
