Crude oil fell below 45 dollars a barrel in Asian trade on Monday after the OPEC cartel decided not to cut output during a weekend meeting. OPEC oil ministers delayed the decision until at least May to give rich and emerging nations time to respond to the global economic crisis. Crude futures plunged in early trading yesterday after the OPEC deferred another production cut for at least 11 weeks at its weekend meeting. OPEC has reduced daily output targets by 4.2 million barrels since Sep to prevent a glut and slow the decline in prices. The group is scheduled to meet again on May 28. Now support for the crude is seen at 2345 and below could see a test of 2242. Resistance is now likely to be seen at 2513, a move above could see prices testing 2578.
Trading Ideas: Crude trading range is 2350-2490.
Yesterday crude traded lower by 3% and recover again.
Opec production cut was unchange for the market but may month can seen some.
Crude $ range is 45-49.60$.
Buy Crude Apr @ 2400-2420 SL 2378 TGT 2438-2456-2474-2490. MCX
Crude $ is trading at: 47.74
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