Gold Silver Reports – Crude Oil MCX Buy on Dips, Buy Between 3710—3680 Resistance Key 3777 — Technically Crude Oil market is under fresh buying as market has witnessed gain in open interest by 3.44% to settled at 14513 while prices up 5 rupees.
MCX Crude Oil Report
MCX Crude Oil is getting support key at 3710 and below same could see a test of 3680 levels and resistance key is now likely to be seen at 3742, a move above could see prices kissing 3777.
Crude oil traded in range on pledges from OPEC leader Saudi Arabia and non-OPEC Russia that any exit from crude output cuts would be gradual. Crude volumes declined rapidly as traders closed positions ahead of the upcoming Christmas and New Year breaks.
Also weighing on the market was the expected return of the 450,000 barrels per day (bpd) Forties pipeline system in the North Sea in January. The pipeline, which delivers crude underpinning Brent futures, was shut earlier this month due to a crack.
Operator Ineos said it expected to complete repairs around Christmas and to gradually restart the system in early January. The OPEC-led pact to withhold supplies started in January this year, and the producer group and its allies decided in November to extend the cuts to cover all of 2018, instead of letting them expire next March, as had been planned.
The supply restraint has resulted in significant reductions of oil inventories and helped push up Brent prices by more than 45 percent since June this year. The Energy Information Administration figures showed U.S. oil production at 9.79 million barrels a day, while exports reached 1.86 million barrels a day, near record highs.
The uptick in US production last week was offset somewhat by falling crude supplies for a fifth straight week. Inventories of U.S. crude fell by roughly 6.5 million barrels for the week ended Dec. 15, beating expectations of a draw of 3.8 million barrels, according to EIA data. – Neal Bhai Reports
