MCX Crude Oil under long liquidation; Resistance seen at 4466
Commodity Online | April 12 2021
UPDATED 10:00:30 IST

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Technically Crude Palm Oil market is under long liquidation as market has witnessed drop in open interest by 12.14% to settled at 4131 while prices down 4 rupees.

Now MCX Crude Oil is getting support at 4410 and below same could see a test of 4387 levels, and resistance is now likely to be seen at 4466, a move above could see prices testing 4499.

Crude Oil yesterday settled down by 0.09% at 4434 as investors weighed rising supplies from major producers and the impact on fuel demand from the COVID-19 pandemic.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+ that includes Russia, agreed to gradually increase supplies by 2 million barrels per day between May and July.

Concerns are surfacing that renewed lockdowns in parts of the world to curb rising COVID-19 cases and problems with vaccinations could alter the oil demand picture.

The forecast for global oil demand outlook has shifted lower amid renewed lockdowns in parts of the world to curb rising Covid-19 cases and problems with vaccinations.

Russia expects the fallout from the COVID-19 pandemic on the global consumption of oil and oil products may last until 2023-2024.

World oil and liquid fuels production fell in 2020 to 94.25 million barrels per day (bpd) from 100.61 million bpd in 2019, amid the pandemic, which led to lockdowns, halting 80% of air traffic and a quarter of road traffic at its peak and denting fuel consumption.

The Organization of the Petroleum Exporting Countries expects oil demand to grow by 5.6 million barrels per day this year under its base case scenario. Russian Deputy Energy Minister Alexander Novak has also projected similar growth.

Trading Ideas:
--Crude Oil trading range for the day is 4387-4499.
--Crude Oil prices edged down as investors weighed rising supplies from major producers and the impact on fuel demand from the COVID-19 pandemic.
--OPEC+ that includes Russia, agreed to gradually increase supplies by 2 million barrels per day between May and July.
--The forecast for global oil demand outlook has shifted lower amid renewed lockdowns in parts of the world to curb rising Covid-19 cases and problems with vaccinations.

Courtesy: Kedia Commodities
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