In reference to my previous article Crude has achieved the level of 3625 and further, it may rally towards 3867 in coming to few sessions and could take support near 3360.
Yesterday Crude prices erased the gains and fell by 1% on bearish EIA Crude oil inventory report, although the sentiments remain positive in global markets for crude prices. WTI Crude oil was at $ 51.73 down by 1.20% & Brent trading at $ 60.77 down by 1.09% as of 13:15 IST. Both benchmarks had slipped on bearish EIA report. The bilateral talks lasted long because both sides were looking for some serious results. There are sentiments that US-China trade dispute talks were going well, which ignite hopes in the market.
EIA CRUDE OIL INVENTORY ANALYSIS
EIA reported crude oil inventory draw of 1.68 million barrels for the week compared to the expectation of 2.4 million barrels draw, while gasoline stockpiles rose by 8.1 million barrels compared to 3.3 million barrels. Late night API reported crude oil inventory draw of 6.127 million barrels for the week compared to the expectation of 3.3 million barrels draw. EIA also said that US production reported flat at 11.7 million barrels per day.
Global growth concern
According to the reports from World Bank global economic growth, outlook revised lower to 2.9% from a prior outlook of 3%, rising downside risks to the outlook. The World Bank said that “International trade and manufacturing activity have softened, trade tensions remain elevated, and some large emerging markets have experienced substantial financial market pressures”. As World Bank downgraded its forecast of global economic growth, develop the fear in mind of the investor.
Technical levels to consider
Based on daily charts, prices are trading above 23.6 retracement level $50.51; which now act as immediate support for the counter. Price kissed the 50-day moving average $51.86, if sustain above these levels then may take the counter towards 38.2% retracement $55.55. On MCX Crude may find support near 3625 & resistance at 3749; 50-day moving average. Break above 3749 levels could take the rally towards 4th Dec high 3867 & ultimately towards 38.2 retracement level (4015).
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