MCX Gold likely to move in a range of 30846-31246
MCX Silver may trade between 36364-37304 levels
MCX Natural Gas under short covering; Resistance seen at 282.6
MCX Copper under short covering
MCX Zinc under Fresh buying; Support seen at 183.7
Technically Crude Oil market is under short covering as market has witnessed drop in open interest by 8.41% to settled at 14624 while prices up 41 rupees.
Now MCX Crude Oil is getting support at 4357 and below same could see a test of 4311 level, And resistance is now likely to be seen at 4465, a move above could see prices testing 4527.
Crude Oil on MCX settled up 0.94% at 4403 after top exporter Saudi Arabia announced a December supply cut, a measure likely aimed at halting a market slump that has seen crude decline by 20 percent since early October.
Saudi Arabia plans to reduce oil supply to world markets by 0.5 million barrels per day (bpd) in December, its energy minister said, as the OPEC power faces uncertain prospects in getting other producers to agree to a coordinated output cut. Khalid al-Falih told reporters that Saudi Aramco’s customer nominations would fall by 500,000 bpd in December versus November due to seasonal lower demand.
The cut represents a reduction in global oil supply of about 0.5 percent. Saudi Arabia is the de facto leader of the Organization of the Petroleum Exporting Countries (OPEC).
A big concern for Saudi Arabia and other traditional producers from the Middle East-dominated OPEC is the surge in U.S. output. U.S. energy firms last week added 12 oil rigs in the week to Nov. 9 looking for new reserves, bringing the total count to 886, the highest level since March 2015, Baker Hughes energy services firm said.
The rig count indicates U.S. crude output, already at a record 11.6 million bpd, will increase further. Global oil prices are down by around 20% since early October, buffeted by signs of growing output from key producers, mainly the U.S., Saudi Arabia and Russia, and indications of a global economic slowdown.
Trading Ideas:
–Crude Oil trading range for the day is 4311-4527.
–Crude Oil gained after top exporter Saudi Arabia announced a December supply cut, a measure likely aimed at halting a market slump
–Saudi Arabia plans to reduce oil supply to world markets by 0.5 million barrels per day (bpd) in December, its energy minister said.
–Khalid al-Falih told reporters that Saudi Aramco’s customer nominations would fall by 500,000 bpd in December versus November due to seasonal lower demand.
Courtesy: Kedia Commodities
Source: Commodityonline.com
