MCX Crude Oil under fresh buying; Resistance seen at 3184
Commodity Online | July 22 2020
UPDATED 09:50:06 IST

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Technically Crude Oil market is under fresh buying as market has witnessed gain in open interest by 20.21% to settled at 1237 while prices up 56 rupees.

Now MCX Crude Oil is getting support at 3062 and below same could see a test of 3000 levels, and resistance is now likely to be seen at 3184, a move above could see prices testing 3244.

Crude Oil yesterday settled up by 1.83% at 3124 helped by positive news about vaccine trials and a European Union stimulus deal reaching levels last seen when an oil price war erupted in early March between Russia and Saudi Arabia.

U.S. crude oil stockpiles were seen falling last week, while inventories of refined products also likely dropped, a preliminary poll showed.

Middle-East crude oil exports for last week are provisionally assessed at 92.3 million bbl (13.2 million bpd) compared to the 111.0 million bbl (15.8 million bpd) for the week prior.Saudi volumes last week were seen at 4.7 million bpd.

Brazil increased crude exports to Asia in the first half of the year, stealing a slice of a coveted developing market from global rivals who made record cuts to shipments to match the unprecedented fall in demand caused by the coronavirus pandemic.

The rise reflects Brazil's growing clout among global oil producers as its massive offshore projects come online. Brazil is expected to deliver one of the biggest increases to global supply in the next five years from nations outside of the Organization of the Petroleum Exporting Countries, according to the International Energy Agency.

China's refineries imported and processed record amounts of crude oil in June, and while these are undoubtedly bullish economic signals, it's worth noting that flows into storage tanks were also likely at an all-time high.

Trading Ideas:
--Crude Oil trading range for the day is 3000-3244.
--Crude Oil rose helped by positive news about vaccine trials and a European Union stimulus deal.
--U.S. crude oil stockpiles were seen falling last week, while inventories of refined products also likely dropped, a preliminary poll showed.
--Brazil boosts oil exports to Asia as global rivals make record cuts.

Courtesy: Kedia Commodities

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