Technically Crude Oil market is under fresh buying as market has witnessed gain in open interest by 44.23% to settled at 3900 while prices up 125 rupees.
Now MCX Crude Oil is getting support at 5440 and below same could see a test of 5356 levels, and resistance is now likely to be seen at 5585, a move above could see prices testing 5646.
Crude Oil yesterday settled up by 2.32% at 5524 supported by record U.S. implied demand and falling crude stockpiles, even as the spread of the Omicron coronavirus variant threatens to put a brake on consumption globally.
Crude also got a boost after the U.S. Federal Reserve gave an upbeat economic outlook, which lifted investor spirits even as the Fed flagged a long-awaited end to its monetary stimulus.
Fed Chair Jerome Powell put forward a bullish outlook on the economy saying consumer demand, labour market, and overall economic conditions in the United States are “hot”.
Demand has been rising in 2021 after last year’s collapse, and the U.S. Energy Information Administration (EIA) said product supplied by refineries, a proxy for demand, surged in the latest week to 23.2 million barrels per day (bpd).
Lending further price support, the EIA also reported that U.S. crude stocks fell 4.6 million barrels. Worries about the virus and the prospect of a supply surplus next year, as flagged by the International Energy Agency in its monthly report this week, limited gains.
Britain and South Africa reported record daily COVID-19 cases while many firms across the globe asked employees to work from home, which could limit demand going forward.
Trading Ideas:
–Crude Oil trading range for the day is 5356-5646.
–Crude Oil gained supported by record U.S. implied demand and falling crude stockpiles.
–U.S. crude inventories drop more than expected, demand surges.
–Upbeat U.S. Federal Reserve boosts risk appetite.
Courtesy: Kedia Commodities
Source: Comodity Online