MCX Silver may trade in a range between 39735-40607
Gold market under short covering; Support seen at 32651
NCDEX Chana under long liquidation
MCX Cotton under fresh selling; Resistance seen at 20960
MCX Mentha Oil expected to trade in a range between 1489.6-1561.4
Technically now Crude oil is getting support at 3729 and below same could see a test of 3639 levels and resistance is now likely to be seen at 3880, a move above could see prices testing 3941.
Crude Oil on MCX settled up 3.75% at 3820 after Washington imposed sanctions on Venezuelan state-owned oil firm PDVSA in a step set to severely curb the OPEC member’s crude exports to the United States.
Saudi Arabia expects to reduce oil output once again in February and pump for six months at levels “well below” the production limit it accepted under OPEC’s oil-cuts accord, Energy Minister Khalid Al-Falih said.
Despite the move, which comes as the U.S government looks to pile pressure on sitting President Nicolas Maduro to step down, ample global oil supply and an economic slowdown especially in China were keeping crude prices in check.
The United States has remained a major destination for Venezuelan oil despite their political differences, although volumes have declined over the past years amid Venezuela’s economic crisis and as the U.S. government has started targeting the South American nation with sanctions.
The U.S. government is supporting Venezuelan opposition leader Juan Guaido, who proclaimed himself interim president last week and is demanding the resignation of Maduro. Despite its huge reserves, Venezuela’s exports declined to little more than 1 million barrels per day in 2018 from 1.6 million bpd in 2017, according to Refinitiv ship tracking data and trade sources.
While news of the sanctions against Venezuela grabbed headlines, analysts said the fundamental issue for global oil trade remained plentiful supply. Global oil supply remains high largely due to a more than 2 million bpd increase in U.S. crude oil production last year, to a record 11.9 million bpd.
Trading Ideas:
–Crude Oil trading range for the day is 3639-3941.
–Crude oil prices crept up after Washington imposed sanctions on Venezuelan state-owned oil firm PDVSA.
–Despite its huge reserves, Venezuela’s exports declined to little more than 1 million barrels per day in 2018 from 1.6 million bpd in 2017, according to data.
–Saudi Arabia expects to reduce oil output once again in February and pump for six months at levels “well below” the production limit.
Courtesy: Kedia Commodities
Source: Commodityonline.com
