MCX Crude Oil under fresh selling; Support seen at 3659
Commodity Online | February 08 2019
UPDATED 12:00:10 IST

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Technically Crude Oil market is under fresh selling as market has witnessed gain in open interest by 13.12% to settled at 12177.

Now MCX Crude Oil is getting support at 3659 and below same could see a test of 3592 level, And resistance is now likely to be seen at 3836, a move above could see prices testing 3946.

Crude Oil on MCX settled down 3.97% at 3727 after U.S. crude inventories rose and as production levels in the country held at record levels, but OPEC-led supply cuts and Washington's sanctions against Venezuela supported markets.

U.S. crude oil inventories climbed by 1.3 million barrels in the week that ended Feb. 1 to 447.21 million barrels, data from the Energy Information Administration (EIA) showed. Meanwhile, average weekly U.S. crude oil production remained at the record 11.9 million barrels per day (bpd) it reached in late 2018.

Gasoline inventories climbed by around 510,000 barrels in the latest week, compared to expectations for a build of 1.60 million barrels, while distillate stockpiles decreased by 2.26 million barrels, compared to forecasts for a decline of 1.81 million.

But the EIA also reported that crude stockpiles at Cushing, Okla., the delivery point for U.S. oil futures, hit one-year highs of 42.6 million after rising 1.4 million barrels last week. Total OPEC exports to the U.S. finished at a five-year low of 1.41 million barrels per day in January, data showed.

The United States is currently the world's largest oil producer, ahead of traditional top suppliers Russia and Saudi Arabia.Countering the rising U.S. crude output and inventories are voluntary supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC) aimed at tightening the market and propping up prices. Meanwhile, U.S. sanctions against Venezuela's oil industry are expected to freeze the sales proceeds of 500,000 bpd of crude exports.

Trading Ideas:
--Crude Oil trading range for the day is 3592-3946.
--Crude Oil dropped after U.S. crude inventories rose and as production levels in the country held at record
--But OPEC-led supply cuts and Washington's sanctions against Venezuela supported markets.
--U.S. crude oil inventories climbed by 1.3 million barrels in the week that ended Feb. 1 to 447.21 million barrels, data from the EIA showed.

Courtesy: Kedia Commodities
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