Energy Commodity Update by CapitalVia
Crude oil prices were looking weak on Friday as weak economic data from Euro zone raised concerns over demand from the region and Germany too. German retail sales and consumer climate both fell below expectations.
However, the downside was limited as the US refinery maintenance season is about to end, which could help in reducing stockpiles as refineries boost output. US President continued efforts to hold off more sanctions on Iran ahead of the meet on November 7-8 to discuss the nuclear program.
Crude oil prices are expected to go down as expectations of reduced sanctions on Iran and optimism over a resolution to the Libyan oil disruption can push prices down.
For the coming week 5710/5500 will act as major supports levels whereas 6110/6400 will act as major resistance in MCX Crude oil October futures. For the next week, trader can go for sell on higher level strategy, if MCX Crude October future sustain below 5930 levels then it could test the levels 5855/5710.