MCX Crude Oil under fresh selling; Resistance seen at 3159
Commodity Online | July 24 2020
UPDATED 09:50:37 IST

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Technically Crude Oil market is under fresh selling as market has witnessed gain in open interest by 4.72% to settled at 1243 while prices down 19 rupees.

Now MCX Crude Oil is getting support at 3091 and below same could see a test of 3065 levels, and resistance is now likely to be seen at 3159, a move above could see prices testing 3201.

Crude Oil yesterday settled down by 0.61% at 3116 with the market weighed down by a surprise increase in U.S. crude oil reserves as the coronavirus pandemic hits fuel consumption.

U.S. crude and distillate inventories rose unexpectedly and fuel demand slipped in the most recent week, the Energy Information Administration said, as a sharp rise in coronavirus cases has started to hit U.S. consumption.

Crude inventories rose by 4.9 million barrels in the week to July 17 to 536.6 million barrels, compared with expectations in for a 2.1 million-barrel drop. Production rose to 11.1 million barrels per day, up by 100,000 barrels per day.

President Donald Trump said the outbreak would probably worsen before it got better, a shift from his previously robust emphasis on reopening the economy. A fresh dispute between Washington and Beijing put further pressure on prices.

The United States gave China 72 hours to close its consulate in Houston amid accusations of spying, marking a dramatic deterioration in relations between the world's two biggest economies.

Economic data from Japan, the world's fourth-largest oil consumer, also weighed on prices. Factory activity contracted for a 15th straight month in July, indicating that lower economic activity due to the pandemic is extending into the third quarter.

Trading Ideas:
--Crude Oil trading range for the day is 3065-3201.
--Crude Oil dropped with the market weighed down by a surprise increase in U.S. crude oil reserves as the coronavirus pandemic hits fuel consumption.
--Rising coronavirus cases reduce U.S. summer fuel consumption.
--U.S. crude inventories rise by 4.9 million barrels.

Courtesy: Kedia Commodities