MCX Nickel may trade between 806.5-864.5 levels
MCX Aluminium under fresh selling; Support seen at 141.7
Zinc market under long liquidation; Support seen at 183.3
Copper market under fresh selling; Support seen at 428
MCX Menthol Oil under short covering
Technically MCX Crude Oil is getting support at 4299 and below same could see a test of 4235 levels and resistance is now likely to be seen at 4425, a move above could see prices testing 4487.
Crude Oil on MCX settled down 1.56% at 4362 as global supply increased and investors worried about the impact on fuel demand of lower economic growth and trade disputes.
Oil peaked in October on concerns that U.S. sanctions on Iran that came into force this week would deprive the oil market of substantial volumes of crude, draining inventories and bringing shortages in some regions.
But other big producers, such as Saudi Arabia, Russia and shale companies in the United States, have increased output steadily, more than compensating for lost Iranian barrels. The United States, Russia and Saudi Arabia are pumping at or near record highs, producing more than 33 million barrels per day (bpd), a third of the world’s oil.
The U.S. sanctions, meanwhile, are unlikely to cut supply as much as expected. Washington has granted exemptions to Iran’s biggest buyers, allowing them to buy limited amounts of oil for at least another six months.
Washington has said it wants to force Iranian oil exports down to zero, but Bernstein Energy now expects “Iranian exports will average 1.4 million to 1.5 million bpd” during the exemption period, about half the volume in mid-2018. The Joint OPEC-Non-OPEC Ministerial Monitoring Committee, which includes Saudi Arabia and other major Middle Eastern oil producers along with Russia, will be meeting this weekend in Abu Dhabi.
Russia will be meeting with OPEC a day after that, in line with the cooperation that has existed since 2015 between the cartel and Moscow to intervene in any collapse in global oil prices.
Trading Ideas:
–Crude Oil trading range for the day is 4235-4487.
–Crude oil dropped as global supply increased and investors worried about the impact on fuel demand of lower economic growth and trade disputes.
–The United States, Russia and Saudi Arabia are pumping at or near record highs, producing more than 33 million barrels per day (bpd), a third of the world’s oil.
–The U.S. sanctions, meanwhile, are unlikely to cut supply as much as expected.
Courtesy: Kedia Commodities
Source: Commodityonline.com
