Commodity Trading Tips for Crudeoil by Kedia Commodity
Commodity Trading Tips for Crudeoil by Kedia Commodity

Crudeoil on MCX settled up 0.46% at 3284 on a growing sense that OPEC and non-member Russia would extend their production cut, seeking to drive the market higher. The U.S. energy department released supply and demand figures for January, the latest month available, saying the country's oil demand for that month was up 0.9 percent at 19.234 million barrels per day, while production rose 60,000 bpd to 8.835 million barrels. Energy services firm Baker Hughes said U.S. oil rigs increased by 10 to 662 in the week, making the first quarter the strongest for oil rig additions since mid-2011. There was a growing sense that the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC oil production giant Russia would agree to continue their production cut deal seeking to drive prices higher. OPEC and non-OPEC producers including Russia agreed late last year to cut output by almost 1.8 million barrels per day (bpd) during the first half of the year in order to rein in a global supply overhang and prop up prices. Yet so far, alternative supplies, including from the United States where production is soaring, and doubts that Russia was complying with its promised cuts, have prevented market re-balancing. Still, over the past week, a growing consensus has emerged that the supply cut would be extended into the second half of the year - and that Russia would increasingly comply. Technically market is under short covering as market has witnessed drop in open interest by -9.19% to settled at 13171 while prices up 15 rupees, now Crudeoil is getting support at 3256 and below same could see a test of 3229 level, And resistance is now likely to be seen at 3299, a move above could see prices testing 3315.

Trading Ideas:

# Crudeoil trading range for the day is 3229-3315.

# Crude oil prices gained on a growing sense that OPEC and non-member Russia would extend their production cut, seeking to drive the market higher.

# The U.S. energy department released report saying the country's oil demand for that month was up 0.9 percent at 19.234 million barrels per day.

# Energy services firm Baker Hughes said U.S. oil rigs increased by 10 to 662 in the week, making the first quarter the strongest for oil rig additions since mid-2011.




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