Technically Crude Oil market is under fresh buying as market has witnessed gain in open interest by 13.68% to settled at 2310 while prices up 13 rupees.
Now MCX Crude Oil is getting support at 3011 and below same could see a test of 2957 levels, and resistance is now likely to be seen at 3100, a move above could see prices testing 3135.
Crude Oil yesterday settled up by 0.43% at 3064 on tighter supplies from major producers, but concerns that a record rise in global coronavirus cases could curb a recovery in fuel demand checked gains.
In the United States and Canada, the number of operating oil and natural gas rigs fell to a record low even as higher oil prices prompt some producers to start drilling again. Iraq and Kazakhstan pledged to comply better with oil production cuts during an OPEC+ panel.
However, the OPEC+ group, consisting of Organization of the Petroleum Exporting Countries and its allies including Russia, has yet to decide whether to extend a record supply cut of 9.7 million barrels per day (bpd) for a fourth month in August.
Oil prices have also been supported by a recovery in fuel demand globally following a collapse in April-May during coronavirus shutdowns as countries across the world resume economic activities. Hedge funds and money managers cut bullish wagers on U.S. crude from the highest levels in nearly two years, data showed.
The speculator group cut its combined futures and options position in New York and London by 23,948 contracts to 377,173 in the week to June 16, the U.S. Commodity Futures Trading Commission (CFTC) said. Net long positions in U.S. crude had jumped to the highest since early August 2018 a week earlier.
--Crude Oil trading range for the day is 2957-3135.
--Crude Oil prices nudged higher on tighter supplies from major producers.
--However concerns that a record rise in global coronavirus cases could curb a recovery in fuel demand checked gains.
--Iraq and Kazakhstan pledged to comply better with oil production cuts during an OPEC+ panel.
Courtesy: Kedia Commodities