Technically Crude Oil market is under fresh buying as market has witnessed gain in open interest by 33.41% to settled at 7360 while prices up 141 rupees.
Now MCX Crude Oil is getting support at 6180 and below same could see a test of 6076 levels, and resistance is now likely to be seen at 6340, a move above could see prices testing 6396.
Crude Oil yesterday settled up by 2.3% at 6283 with concerns about tight supply and stockpiles fuelling bullish sentiment.
Prices have been boosted by worries about coal and gas shortages in China, India and Europe, spurring some power generators to switch from gas to fuel oil and diesel.
Winter weather in much of the United States is expected to be warmer than average, according to a National Oceanic and Atmospheric Administration forecast. U.S. crude found support as investors eyed low crude stocks at the U.S. storage hub in Cushing, Oklahoma.
U.S. crude and fuel inventories tightened further last week, as supplies of gasoline hit a two-year low and inventories at the largest U.S. commercial storage hub dropped to a three-year low, the Energy Information Administration (EIA) said.
Crude inventories fell by 431,000 barrels in the week to Oct. 15 to 426.5 million barrels. Crude stocks at the Cushing, Oklahoma, delivery hub fell by 2.3 million barrels to 31.2 million barrels. That’s the lowest level since October 2018, and points to tightness in the market that may take some time to alleviate.
The decline in stocks occurred even as refinery crude runs fell by 71,000 barrels per day in the last week. Refinery utilization rates fell by 2 percentage points as those facilities process fewer barrels in the midst of the traditional maintenance season.
Trading Ideas:
–Crude Oil trading range for the day is 6076-6396.
–Crude Oil rose with concerns about tight supply and stockpiles fuelling bullish sentiment.
–Prices have been boosted by worries about coal and gas shortages in China, India and Europe.
–U.S. EIA data showed crude stocks at Cushing fell to 31.2 million barrels, their lowest level since October 2018.
Courtesy: Kedia Commodities
Source: Comodity Online
