Technically Crude Oil market is under short covering as market has witnessed drop in open interest by 5.92% to settled at 14995.
Now MCX Crude Oil is getting support at 3573 and below same could see a test of 3459 levels and resistance is now likely to be seen at 3753, a move above could see prices testing 3819.
Crude Oil on MCX settled up 6.1% at 3686 on signs that Washington and Beijing may soon resolve a trade dispute that has cast a pall over the global economy. The main source of new supply is the United States, where crude oil production remained at a record 11.7 million barrels per day (bpd) in the week ending Jan. 4, the Energy Information Administration (EIA) said.
Saudi Arabia’s energy minister said he was confident that supply cuts started in late 2018 by the Organization of the Petroleum Exporting Countries (OPEC) and some allies, including Russia, aimed at reining in oversupply would bring the oil market into balance. Crude continues to extend gains as early reports from Beijing regarding trade negotiations are fueling optimism around successful trade talks between the U.S. and China.
Trade talks in Beijing between the world’s two biggest economies entered a third day, amid signs of progress on issues including purchases of U.S. farm and energy commodities and increased U.S. access to China’s markets. If no deal is reached by March 2, Trump has said he will proceed with raising tariffs to 25 percent from 10 percent on $200 billion worth of Chinese imports at a time when China’s economy is slowing significantly.
More fundamentally, however, oil prices have been receiving support from supply cuts started at the end of 2018 by a group of producers around the Organization of the Petroleum Exporting Countries (OPEC) as well as non-OPEC member Russia.
--Crude Oil trading range for the day is 3459-3819.
--Crude Oil gained on signs that Washington and Beijing may soon resolve a trade dispute that has cast a pall over the global economy.
--Saudi Arabia’s energy minister said he was confident that supply cuts started in late 2018 by the OPEC and some allies.
--Khalid al-Falih said he would not rule out calling for further action in future, if needed.
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