Technically Crude Oil market is under fresh buying as market has witnessed gain in open interest by 7.8% to settled at 8863 while prices up 112 rupees.
Now MCX Crude Oil is getting support at 5522 and below same could see a test of 5464 levels, and resistance is now likely to be seen at 5619, a move above could see prices testing 5658.
Crude Oil yesterday settled up by 2.05% at 5579 amid supply concerns as demand picks up in parts of the world with the easing of pandemic restrictions.
Goldman Sachs raised by $10 its forecast for Brent crude at the end of this year to $90 per barrel, as faster fuel demand recovery from the outbreak of the Delta variant of the coronavirus and Hurricane Ida’s hit to U.S. production led to tight global supplies.
Caught short by the demand rebound, members of the Organization of the Petroleum Exporting Countries and their allies, known as OPEC+, have had difficulty raising output as under-investment or maintenance delays persist from the pandemic.
India’s oil imports hit a three-month peak in August, rebounding from nearly one-year lows touched in July, as refiners in the second-biggest importer of crude stocked up in anticipation of higher demand.
Global fuel demand is expected to reach pre-pandemic levels by early next year as the economy shrugs off pandemic woes, but spare refining capacity is likely to weigh on outlook.
While a persistent rise in COVID-19 infections in several markets has hurt recovery in demand for some refined products such as jet fuel, consumption trends of petrol and diesel indicate higher growth.
Trading Ideas:
–Crude Oil trading range for the day is 5464-5658.
–Crude Oil rallied amid supply concerns as demand picks up in parts of the world with the easing of pandemic restrictions.
–Global oil demand seen reaching pre-pandemic levels by early 2022.
–Hess sees global oil demand at 100 mln bpd by end-2021/Q1 2022.
Courtesy: Kedia Commodities
Source: Comodity Online
