MCX Gold under short covering; Support seen at 32101
MCX Silver under short covering; Resistance seen at 39739
MCX Natural Gas likely to move in a range of 234.6-272.4
MCX Copper under short covering
MCX Zinc likely to move in a range of 174.2-178.4
Technically Crude Oil market is under short covering as market has witnessed drop in open interest by 0.43% to settled at 12043 while prices up 62 rupees.
Now MCX Crude Oil is getting support at 3628 and below same could see a test of 3565 level, And resistance is now likely to be seen at 3733, a move above could see prices testing 3775.
Crude Oil gained amid supply cuts led by producer club OPEC and Russia, although a darkening economic outlook may soon weigh on growth in fuel demand. United Arab Emirates Energy Minister Suhail al-Mazrouei said he expects an average oil price of $70 a barrel in 2019 on the back of an agreement to cut output by OPEC and non-OPEC oil exporters reached last month.
The Middle East-dominated producer club of the Organization of the Petroleum Exporting Countries (OPEC) and some non-OPEC allies, including Russia, agreed in late 2018 to cut supply to rein in a global glut.
In the United States, the amount of rigs looking for new oil production has dropped from a 2018-peak of 888 to a still high number of 873 in early 2019, pointing to a potential dent in production growth which was at more than 2 million barrels per day (bpd) last year, bringing American crude ouput to a record 11.7 million bpd.
China’s National Development and Reform Commission (NDRC) signalled it may roll out more fiscal stimulus measures to stem a further economic slowdown. oil price increases came after crude futures fell by more than 2 percent the previous session, dragged down by weak Chinese trade data which pointed to a global economic slowdown. outlook for the global economy continues to be highly uncertain.
Trading Ideas:
–Crude Oil trading range for the day is 3565-3775.
–Crude Oil gained amid supply cuts led by producer club OPEC and Russia, although a darkening economic outlook may soon weigh on growth in fuel demand.
–United Arab Emirates Energy Minister Suhail al-Mazrouei said he expects an average oil price of $70 a barrel in 2019 on the back of an agreement to cut output.
–The Middle East-dominated producer club of the OPEC and some non-OPEC allies, including Russia, agreed in late 2018 to cut supply to rein in a global glut.
Courtesy: Kedia Commodities
Source: Commodityonline.com
