Nickel market under fresh selling; Support seen at 913.5
MCX Zinc likely to trade between 169.1-176.7 levels
MCX Copper likely to trade between 411.9-428.3 levels
MCX Natural Gas may trade in a range between 184.8-192.6
Silver market under fresh selling; Support seen at 38256
Technically Crude Oil market is under short covering as market has witnessed drop in open interest by 25.51% to settled at 7950 while prices up 27 rupees.
Now MCX Crude Oil is getting support at 4608 and below same could see a test of 4548 levels and resistance is now likely to be seen at 4705, a move above could see prices testing 4742.
Crude Oil on MCX settled up 0.58% at 4669 recovering from lows as traders turned attention to U.S. data that is expected to show another draw in stockpiles. The rebound in prices comes amid renewed supply disruptions in Venezuela and day after oil observers appeared to trim their bets on a global supply shortage.
The slump in oil prices to a nearly one-month low of $66.38 intraday triggered a wave of buying on expectations for weekly inventory data to show U.S. supplies fell for a second-straight week.
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The spectre of oversupply returned, with a rise of more than 600,000 barrels in U.S. crude stockpiles, reported by the American Petroleum Institute. Gasoline stocks rose by 425,000 barrels, compared with expectations for a 44,000-barrel decline.
Distillate fuels stockpiles, which include diesel and heating oil, rose by 1.7 million barrels, compared with expectations for an 873,000-barrel gain, the data showed. Two of Venezuela’s four crude upgraders are slated to undergo a period of maintenance in the next few weeks.
The units are capable of processing a combined 700,000 barrels per day. Reports that the U.S. is considering releasing strategic petroleum reserves and has softened its stance toward Iranian crude importers amid renewed exports from Libya has scaled back expectations for a global supply shortage.
Libya’s output rose to 650,000 to 700,000 barrels a day and is expected to rise further after shipments resumed at eastern ports.
Trading Ideas:
–Crude Oil trading range for the day is 4548-4742.
–Crude Oil prices settled higher recovering from lows as traders turned attention to U.S. data that is expected to show another draw in stockpiles.
–The spectre of oversupply returned, with a rise of more than 600,000 barrels in U.S. crude stockpiles, reported by the American Petroleum Institute.
–While Libyan ports are reopening, output at the country’s Sharara oilfield was expected to fall by at least 160,000 barrels per day (bpd).
Courtesy: Kedia Commodities
Source: Commodityonline.com
