Technically Crude Oil market is under fresh buying as market has witnessed gain in open interest by 48.75% to settled at 7656 while prices up 101 rupees.
Now MCX Crude Oil is getting support at 5332 and below same could see a test of 5240 levels, and resistance is now likely to be seen at 5475, a move above could see prices testing 5526.
Crude Oil yesterday settled up by 1.9% at 5425 supported by growing fuel demand and a draw in U.S. crude inventories as production remained hampered in the Gulf of Mexico after two hurricanes.
Oil prices continue to thrive on the momentum of supply constraints in the U.S. Gulf of Mexico, which was reflected in the large crude inventory draws report of last week.
Data from the U.S. Energy Information Administration showed U.S. crude stocks in the week to Sept. 17 fell by 3.5 million barrels to 414 million – the lowest total since October 2018.
Oil also found some support as several members of the Organization of the Petroleum Exporting Countries (OPEC) and allies, collectively known as OPEC+, struggled in recent months to raise output due to years of under-investment or delays to maintenance work because of the coronavirus pandemic.
The oil market was also supported by a return of appetite for risk assets as concerns eased over a possible near-term default by Chinese property developer China Evergrande on its dollar bonds.
Iraq’s oil minister said OPEC and its allies are working to keep crude prices close to $70 per barrel as the global economy recovers, state news agency INA reported. The minister Ihsan Abdul-Jabbar added the ministry “hopes to maintain oil price at more than $65 per barrel.”
Trading Ideas:
–Crude Oil trading range for the day is 5240-5526.
–Crude Oil prices rose supported by growing fuel demand and a draw in U.S. crude inventories.
–U.S. crude stocks fall to lowest since Oct. 2018, EIA says.
–The U.S. EIA data showed U.S. crude stocks in the week to Sept. 17 fell by 3.5 million barrels to 414 million.
Courtesy: Kedia Commodities
Source: Comodity Online
