Technically Crude Oil market is under long liquidation as market has witnessed drop in open interest by 21.08% to settled at 8244 while prices down 13 rupees.
Now MCX Crude Oil is getting support at 6011 and below same could see a test of 5928 levels, and resistance is now likely to be seen at 6168, a move above could see prices testing 6242.
Crude Oil yesterday settled down by 0.21% at 6094 as the IMF trimmed its 2021 global growth forecast to 5.9% from the 6.0% forecast it made in July.It left a 2022 global growth forecast unchanged at 4.9%.
Meanwhile, with demand growing as economies recover from pandemic lows, the Organization of the Petroleum Exporting Countries and allied producers, collectively known as OPEC+, are sticking to plans to restore output gradually rather than boost supply quickly.
The White House stands by its calls for oil-producing countries to “do more” to support the global economic recovery, an official said, as crude prices hit multi-year peaks.
The official said the administration was closely monitoring the cost of oil and gasoline and “using every tool at our disposal to address anti-competitive practices in U.S. and global energy markets to ensure reliable and stable energy markets.”
Citigroup Inc. said oil prices may hit $90 a barrel at times this winter as gas-to-oil switching drives stockpiles lower. Power prices have risen to records in recent weeks as a rebound in global demand contributed to energy shortages in Asia, Europe and the United States.
Trading Ideas:
–Crude Oil trading range for the day is 5928-6242.
–Crude Oil dropped as the IMF trimmed its 2021 global growth forecast to 5.9% from the 6.0% forecast it made in July.
–Energy crunch stokes inflation, economic recovery concerns.
–White House stands by calls for OPEC+ to do more on oil prices –official.
Courtesy: Kedia Commodities
Source: Comodity Online
