MCX Crude Oil under fresh buying; Resistance seen at 2583
Commodity Online | May 21 2020
UPDATED 09:50:37 IST

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Technically Crude Oil market is under fresh buying as market has witnessed gain in open interest by 4.51% to settled at 2598 while prices up 118 rupees.

Now MCX Crude Oil is getting support at 2437 and below same could see a test of 2354 levels, and resistance is now likely to be seen at 2583, a move above could see prices testing 2646.

Crude Oil yesterday settled up by 4.91% at 2520 amid signs of improving demand and production cuts by major oil producers. However, a bleak economic outlook from the U.S. Federal Reserve limited the upside of prices.

U.S. crude oil and gasoline stocks fell while distillate stocks rose, data from industry group the American Petroleum Institute showed. Crude inventories fell by 4.8 million barrels in the week to May 15 to 521.3 million barrels, compared with expectations for a build of 1.2 million barrels.

Crude stocks at the Cushing, Oklahoma, delivery hub fell by 5 million barrels, API said. Refinery crude runs rose by 229,000 barrels per day, API data showed. Gasoline stocks fell by 651,000 barrels, compared with expectations for a 2.1 million-barrel draw.

Oil product inventories in the United Arab Emirates' (UAE) Fujairah bunkering and oil hub in the Middle East jumped to record highs in the week to May 18.

Fujairah's overall oil product inventories soared to 30.262 million barrels in the week to May 18, above the previous record of 27.859 million barrels in the week before, the data showed.

Russia's oil and gas condensate production fell to 9.42 million barrels per day (bpd) on May 1-19 as a global deal on reducing output took effect. That was down from 11.35 million bpd in April and from 9.43 million bpd May 1-14.

Trading Ideas:
--Crude Oil trading range for the day is 2354-2646.
--Crude Oil prices gained amid signs of improving demand and production cuts by major oil producers.
--However, a bleak economic outlook from the U.S. Federal Reserve limited the upside of prices.
--Crude inventories fell by 4.8 million barrels in the week to May 15 to 521.3 million barrels.

Courtesy: Kedia Commodities