Silver market under fresh selling; Support seen at 38266
Gold market under long liquidation; Support seen at 31960
MCX Natural Gas under fresh buying; Support seen at 201.5
MCX Copper under fresh buying; Resistance seen at 462.3
MCX Zinc under fresh buying; Support seen at 196.3
Technically Crude Oil market is under fresh buying as market has witnessed gain in open interest by 0.26% to settle at 9505.
Now MCX Crude Oil is getting support at 3966 and below same could see a test of 3927 levels and resistance is now likely to be seen at 4044, a move above could see prices testing 4083.
Crude Oil on MCX settled up 0.48% at 4005 as faith in OPEC-led efforts to curtail supply outweighed the restart of production at Libya’s largest oilfield and concerns over China’s economy.
Oil demand growth has been flagging along with an economic slowdown, especially in Europe and Asia. China said it was targeting economic growth of 6.0 to 6.5 percent in 2019, down from the 6.6 percent growth reported last year, which was already the lowest in decades. Optimism that the United States and China will soon end their bitter trade disputes has offered some support.
China’s Commerce Minister Zhong Shan said that trade talks with the United States have been difficult but that working teams from both countries are continuing with their negotiations. To prop up the market, the Organization of the Petroleum Exporting Countries (OPEC) has led efforts since the start of the year to withhold around 1.2 million barrels per day (bpd) of supply.
The group was due to decide in April whether to continue withholding supply, but OPEC sources said this week a decision would likely be delayed until June, meaning cuts will continue at least until then.
OPEC-led supply cuts, as well as U.S. sanctions against its members Iran and Venezuela, come at the same time as U.S. crude output C-OUT-T-EIA chases ever new records, rising by more than 2 million barrels per day (bpd) since early 2018 and above 12 million bpd for the first time in February.
Trading Ideas:
–Crude Oil trading range for the day is 3927-4083.
–Crude oil gained as faith in OPEC-led efforts to curtail supply outweighed the restart of production at Libya’s largest oilfield and concerns over China’s economy.
–Oil demand growth has been flagging along with an economic slowdown, especially in Europe and Asia.
–To prop up the market, the OPEC has led efforts since the start of the year to withhold around 1.2 million barrels per day (bpd) of supply.
Courtesy: Kedia Commodities
Source: Commodityonline.com
