Technically Crude Oil market is under long liquidation as market has witnessed drop in open interest by 7.37% to settled at 7290 while prices down 5 rupees.
Now MCX Crude Oil is getting support at 5452 and below same could see a test of 5334 levels, and resistance is now likely to be seen at 5668, a move above could see prices testing 5766.
Crude Oil yesterday settled down by 0.09% at 5571 after as higher U.S. crude oil inventories and a strong dollar outweighed bullishness from supply deficit forecasts.
U.S. oil and fuel stockpiles increased by 4.6 million barrels to 418.5 million barrels in the week to Sept. 24, the U.S. Energy Department’s Energy Information Administration (EIA) said.
But expectations of a continued supply deficit supported prices.Citigroup is forecasting oil balances to be in a 1.5 million barrel per day deficit on average over the next six months, even with continued supply increases.
OPEC+ is likely to stick to an existing deal to add 400,000 barrels per day (bpd) to its output for November when it meets next week, sources said, despite oil hitting a three-year high above $80 a barrel and pressure from consumers for more supply.
The Organization of the Petroleum Exporting Countries and allies led by Russia, known as OPEC+, agreed in July to increase production by 400,000 bpd each month to phase out 5.8 million bpd in cuts. It also agreed to assess the deal in December. Last week’s rise in U.S. inventories came as production in the Gulf returned close to levels reached before Hurricane Ida struck about a month ago.
Trading Ideas:
–Crude Oil trading range for the day is 5334-5766.
–Crude Oil prices fell after as higher U.S. crude oil inventories and a strong dollar outweighed bullishness from supply deficit forecasts.
–U.S. oil and fuel stockpiles increased by 4.6 million barrels to 418.5 million barrels in the week to Sept. 24.
–OPEC+ seen sticking to November output plans, despite $80 oil, sources say.
Courtesy: Kedia Commodities
Source: Comodity Online
