MCX Mentha Oil under short covering; Support seen at 1276.5
MCX Aluminium may trade between 129.8-131 levels
MCX Nickel likely to move in a range of 1051.1-1100.7
MCX Zinc under long liquidation; Resistance seen at 187.5
MCX Copper under long liquidation; Resistance seen at 434
Crude oil on MCX settled down -0.03% at 3327 dipped to settled down finding resistance at the $50 a barrel mark as investors worried higher prices could reactivate shuttered crude output, adding to global oversupply. Crude oil pushed through $50 for the first time in around seven months on Thursday as supply disruptions from Canadian wildfires and attacks in Libya and West Africa have helped cut daily output by 4 million barrels.
Increased demand and a weaker dollar helped support prices. Crude also rose after a group of militant avengers in the Niger delta region of Southern Nigeria claimed responsibility for an attack that shut down Chevron's oil facility in the area. It was the latest assault against a major oil company by the Niger Delta Avengers, a local group that has targeted global energy companies in an attempt to defend the environment. Crude prices then retreated as reports surfaced that Saudi Arabia has offered larger quantities of crude to customers in Asia after a series of oilfield maintenance initiatives were completed earlier this week.
As a result, Saudi Aramco plans to increase output by as much as 1mbpd in the next two weeks. When OPEC convenes for a semi-annual meeting next week in Vienna, the 13-member nation is not expected to come to terms on any agreement that could lead to a comprehensive production freeze. Despite the recent upswing in oil prices, crude is still down by approximately 60% from its level two years ago when it peaked above $100 a barrel. Ever since, prices have fallen precipitously as supply continues to severely outpace demand. Technically market is getting support at 3297 and below same could see a test of 3267 level, and resistance is now likely to be seen at 3367, a move above could see prices testing 3407.
--Crude oil trading range for the day is 3267-3407.
--Crude oil crossed 50$ mark and later settled flat as investors responded to reports of further supply disruptions in Nigeria and growing Asian demand for Saudi Arabian oil.
--The outlook for the global oversupply is positive as the IEA predicted earlier this month that global crude supplies will shrink dramatically this year.
--Crude supplies at the Cushing, Oklahoma delivery hub fell by 649,000 barrels to 67.6 million barrels last week.Courtesy: Kedia Commodities