MCX Zinc under long liquidation; Support seen at 191.2
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MCX Copper under long liquidation
Technically Crude Oil market is under short covering as market has witnessed drop in open interest by 9.32% to settled at 9229 while prices up 44 rupees.
Now MCX Crude Oil is getting support at 3946 and below same could see a test of 3911 level, And resistance is now likely to be seen at 4005, a move above could see prices testing 4029.
Crude Oil on MCX settled up 1.12% at 3982 amid ongoing OPEC-led supply cuts and U.S. sanctions against exporters Venezuela and Iran, although prices were prevented from rising further by record U.S. crude output and rising commercial fuel inventories.
Prices are being supported by efforts led by the Organization of the Petroleum Exporting Countries (OPEC) and other countries – a grouping known as ‘OPEC+’ – to withhold around 1.2 million barrels per day (bpd), a strategy designed to tighten markets.
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U.S. sanctions against the oil industries of OPEC members Iran and Venezuela have also had an impact. Venezuela’s state-run oil firm PDVSA this week declared a maritime emergency, citing trouble accessing tankers and personnel to export its oil amid the sanctions. U.S. crude oil stockpiles rose much more than expected last week, with inventories up by 7.1 million barrels to 452.93 million barrels.
The EIA report also showed that gasoline inventories fell by 4.23 million barrels, compared to expectations for a draw of 2.08 million barrels, while distillate stockpiles decreased by 2.39 million barrels, compared to forecasts for a decline of 1.44 million.
Meanwhile U.S. crude oil production remained at a record 12.1 million bpd, an increase of more than 2 million bpd since early 2018. The Organisation for Economic Co-Operation & Development (OECD) said the world economy would grow 3.3 percent in 2019, down 0.2 percentage points from the OECD’s last set of forecasts in November.
Trading Ideas:
–Crude Oil trading range for the day is 3911-4029.
–Crude Oil gained amid ongoing OPEC-led supply cuts and U.S. sanctions against exporters Venezuela and Iran.
–However, prices were prevented from rising further by record U.S. crude output and rising commercial fuel inventories.
–U.S. crude Oil stockpiles rose much more than expected last week, with inventories up by 7.1 million barrels to 452.93 million barrels.
Courtesy: Kedia Commodities
Source: Commodityonline.com
