MCX Crude Oil under long liquidation: Support seen at 2523
Commodity Online | May 27 2020
UPDATED 09:50:15 IST

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Technically Crude Oil market is under long liquidation as market has witnessed drop in open interest by 21.3% to settled at 2427 while prices down 3 rupees.

Now MCX Crude Oil is getting support at 2523 and below same could see a test of 2473 levels, and resistance is now likely to be seen at 2629, a move above could see prices testing 2685.

Crude Oil yesterday settled down by 0.12% at 2574 pared gains on profit booking after rising on clear signs that producers are sticking to commitments to cut crude supply as more cars get back on the road with coronavirus lockdowns easing around the world.

The market was buoyed by comments from Russia reporting its oil output had nearly dropped to its target of 8.5 million barrels per day (bpd) for May and June under its supply cut deal with the Organization of the Petroleum Exporting Countries (OPEC) and other leading producers, a grouping known as OPEC+.

OPEC+ countries are set to meet again in early June to discuss maintaining their supply cuts to shore up prices, which are still down around 45% since the start of the year.

The big producers agreed in April to cut output by nearly 10 million bpd for May and June.Russia's energy ministry quoted minister Alexander Novak as saying a rise in fuel demand should help cut the current global surplus of around 7-12 million bpd by June or July.

Money managers raised their net long U.S. crude futures and options positions in the week to May 19, the U.S. Commodity Futures Trading Commission (CFTC) said. The speculator group raise its combined futures and options position in New York and London by 23,229 contracts to 380,211 during the period.

Trading Ideas:
--Crude Oil trading range for the day is 2473-2685.
--Crude Oil pared gains on profit booking after rising on clear signs that producers are sticking to commitments to cut crude supply.
--The market was buoyed by comments from Russia reporting its oil output had nearly dropped to its target of 8.5 million barrels per day (bpd) for May and June.
--Russia's energy ministry quoted minister Alexander Novak as saying a rise in fuel demand should help cut the current global surplus of around 7-12 million bpd by June or July.

Courtesy: Kedia Commodities