Mentha Oil market under fresh selling; Support seen at 1599.4
MCX Aluminium under fresh buying; Support seen at 130.7
MCX Nickel may trade in a range between 848.1-901.3
Zinc market under fresh buying; Support seen at 186.2
Copper market under short covering; Support seen at 436.2
Technically Crude Oil market is under short covering as market has witnessed drop in open interest by 8.02% to settle at 8946.
Now Crude Oil is getting support at 3891 and below same could see a test of 3830 levels and resistance is now likely to be seen at 3996, a move above could see prices testing 4040.
Crude Oil on MCX settled up 2.17% at 3951 as OPEC-led supply cuts and announcement of a higher than expected cut by Saudi Arabia encouraged investors. The Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia started voluntary production cuts last month, aiming to tighten the market.
Top exporter and de facto OPEC leader Saudi Arabia said it would cut more than half a million barrels per day (bpd) more in March than the deal called for, sending prices surging. Prices were also buoyed by the partial closure of Saudi Arabia’s Safaniya, its largest offshore oilfield with production capacity of more than 1 million bpd.
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The shutdown occurred about two weeks ago, a source said, and it was not immediately clear when the field would return to full capacity. U.S. oil production is on the rise, while the seizure of Libya’s main oilfield by Eastern armed forces this week could soon lead to its reopening.
But U.S. sanctions on Venezuela and Iran have helped to tighten global supply and security threats could threaten Nigerian production after general elections this weekend. Russian Energy Minister Alexander Novak said that there are risks for global oil markets from the political crisis in Venezuela, yet there are no proposals to reverse the global oil production cut deal.
Novak said Russia has cut its oil production under a pact between OPEC and non-OPEC producers by 80,000-90,000 barrels per day from its level in October, Moscow’s reference level for its cuts.
Trading Ideas:
–Crude Oil trading range for the day is 3830-4040.
–Crude oil climbed as OPEC-led supply cuts and announcement of a higher than expected cut by Saudi Arabia encouraged investors.
–Prices were also buoyed by the partial closure of Saudi Arabia’s Safaniya, its largest offshore oilfield with production capacity of more than 1 million bpd.
–Saudi Arabia said it would cut more than half a million barrels per day (bpd) more in March than the deal called for, sending prices surging.
Courtesy: Kedia Commodities
Source: Commodityonline.com
