MCX CRUDEOIL NEWS : 04.01.2017
Crudeoil on MCX settled down -2.58% at 3590 made a sharp turn tracking Nymex Crude which also settled lower to finished with the drop nearly -2.60% to settle at $52.33/bbl after rising to $55.24 prices plunged from their highest since 2015, amid doubts about whether OPEC production cuts will re-balance the oil markets. Last month OPEC and Russia agreed to output quotas for 2017, but market player say increased production from the US and Canada may result in a prolonged global supply glut. Also yesterday crude fell on a surge in the U.S. dollar index to an 14-year high that made the commodity sold in dollars more expensive for key buyers like China and India. Traders were also concerned about reports that Libya will further increase production, Libya plans to ship from a port near Tripoli nearly 1.9mbls of oil this month from the recently reopened Sharara oil deposit, according to a loading document obtained by Bloomberg. Libya, one of two OPEC countries exempt from output cuts, has increased its production to 685,000 bpd, from around 600,000 bpd in December, an official at the National Oil Corporation said on Sunday. Also on the supply front, U.S. oil production increased in October to 8.8 million barrels a day, the highest level since May 2016. Now today traders are eyeing for data to be released later today from API which release its estimates of U.S. crude and refined product inventories at the end of last week. The figures will be followed on Thursday by official data from the U.S. Department of Energy. Figures this week in both cases are delayed a day because of the New Year holiday. Technically market is getting support at 3502 and below same could see a test of 3413 level, And resistance is now likely to be seen at 3730, a move above could see prices testing 3869.
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