Technically Crude Oil market is under short covering as market has witnessed drop in open interest by 5.31% to settled at 3475 while prices up 30 rupees.
Now MCX Crude Oil is getting support at 5357 and below same could see a test of 5275 levels, and resistance is now likely to be seen at 5526, a move above could see prices testing 5613.
Crude Oil yesterday settled up by 0.55% at 5438 as OPEC raised its world oil demand forecast for the first quarter of 2022 and stuck to its timeline for a return to pre-pandemic levels of oil use, saying the Omicron coronavirus variant would have a mild and brief impact.
The upbeat view from the Organization of the Petroleum Exporting Countries comes as oil prices have recovered some of the slide seen when the variant emerged last month.
However upside seen limited as new concerns about the Omicron coronavirus variant and doubts around the effectiveness of vaccines against it were weighing on prices.Still, the World Health Organization says Omicron poses a “very high” global risk.
In a monthly report, OPEC said it expects world oil demand to average 99.13 million barrels per day (bpd) in the first quarter of 2022, up 1.11 million bpd from its forecast last month.The OPEC+ alliance of oil producers will continue to restore supply to meet growing demand, Russia’s Deputy Prime Minister Alexander Novak said.
Volatility on the oil market is not very high at the moment, Novak said. Russia’s planned offline primary oil refining capacity for December has been revised up by 20% to 1.779 million tonnes, Refinitiv data.
Trading Ideas:
–Crude Oil trading range for the day is 5275-5613.
–Crude Oil gained as OPEC raised its world oil demand forecast for the first quarter of 2022.
–Iraqi oil minister expects OPEC to maintain policy in next meeting.
–U.S. to sell 18 million bbls of oil from reserve on Dec 17.
Courtesy: Kedia Commodities
Source: Comodity Online
