Technically Crude Oil market is under fresh buying as market has witnessed gain in open interest by 29.24% to settled at 2577 while prices up 135 rupees.
Now MCX Crude Oil is getting support at 2308 and below same could see a test of 2213 levels, and resistance is now likely to be seen at 2516, a move above could see prices testing 2629.
Crude Oil yesterday settled up by 5.96% at 2402 supported by ongoing output cuts and signs of gradual recovery in fuel demand as more countries ease curbs imposed to stop the coronavirus pandemic spreading.
Production is also falling as U.S. energy firms cut the number of oil and natural gas rigs operating to an all-time low for a second consecutive week.
The positive mood was reinforced as U.S. Federal Reserve Chairman Jerome Powell issued an optimistic outlook for economic recovery later this year.
Also supporting oil prices are production cuts by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, a grouping known as OPEC+.
The world's top exporter Saudi Arabia announced last week that it would cut an additional 1 million barrels per day in June, while OPEC+ wants to maintain existing oil cuts beyond June when the group is next due to meet. .
Kuwait and Saudi Arabia have agreed to halt oil production from the joint Al-Khafji field for one month, starting from June 1.
Hedge funds and other money managers raised their bullish bets on U.S. crude futures and options to the highest level in more than a year during the latest week, the U.S. CFTC said.
The speculator group raise its combined futures and options position in New York and London by 15,514 contracts to 356,984 during the period ended May 12, the most since April 2019.
--Crude Oil trading range for the day is 2213-2629.
--Crude Oil gained supported by ongoing output cuts and signs of gradual recovery in fuel demand as more countries ease curbs.
--The positive mood was reinforced as Fed Chairman owell issued an optimistic outlook for economic recovery later this year.
--Also supporting oil prices are production cuts by the OPEC and its allies, including Russia, a grouping known as OPEC+.
Courtesy: Kedia Commodities