Natural Gas market is under fresh selling; Support seen at 182.3
MCX Nickel under short covering; Resistance seen at 881.2
MCX Aluminium under short covering; Support seen at 130.4
MCX Mentha Oil under fresh buying; Resistance seen at 1651.8
NCDEX Chana under long liquidation
Technically Crude Oil market is under fresh buying as market has witnessed gain in open interest by 0.29% to settled at 10518 while prices up 61 rupees.
Now MCX Crude Oil is getting support at 3786 and below same could see a test of 3729 levels and resistance is now likely to be seen at 3887, a move above could see prices testing 3931.
Crude Oil on MCX settled up 1.61% at 3843 as producer club OPEC said it had cut supply deeply in January and as U.S. sanctions hit Venezuela’s oil exports. Prices were also supported by a report from the American Petroleum Institute (API) showing that crude inventories fell by 998,000 barrels in the week to Feb. 8 to 447.2 million, compared with analyst expectations for an increase of 2.7 million barrels.
The Organization of the Petroleum Exporting Countries (OPEC), which Saudi Arabia de-facto leads as the world’s top crude oil exporter, said that it had cut its output by almost 800,000 bpd in January to 30.81 million bpd. Supply issues in OPEC-member Venezuela are also bolstering oil prices as the South American country suffers a political and economic crisis, with Washington introducing petroleum export sanctions against state-owned energy firm PDVSA.
Despite the political rifts between Venezuela and the United States, U.S. refiners have in the past been some of the biggest buyers of Venezuelan crude. Most new supply is coming from the United States, where crude production rose by more than 2 million bpd last year to a record 11.9 million bpd, making the country the world’s biggest oil producer ahead of Russia and Saudi Arabia.
And while OPEC and its allies, including Russia, withhold supply, U.S. output is expected to rise further, with the Energy Information Administration saying that U.S. crude production is expected to reach 13.2 million bpd by 2020.
Trading Ideas:
–Crude Oil trading range for the day is 3729-3931.
–Crude oil gained as producer club OPEC said it had cut supply deeply in January and as U.S. sanctions hit Venezuela’s oil exports.
–Prices were also supported by a report from the API showing that crude inventories fell by 998,000 barrels in the week to Feb. 8 to 447.2 million.
–IEA maintains 2019 oil demand growth of 1.4mbpd, raises non-OPEC supply growth forecast to 1.8mbpd from 1.6mbpd
Courtesy: Kedia Commodities
Source: Commodityonline.com
