Gold Silver Reports – Crude Oil MCX Locked in Sideways Range Between 3630—3758 – Crude Oil on MCX settled up 0.49% at 3716 rose as the dollar index declined for the third consecutive session, following an array of data from the US, the world’s largest energy consumer, including the EIA inventory report, and ahead of the final Congress vote on the massive US tax reform bill.
Technically Crude Oil MCX market is getting support key at 3678 and below same could see a test of 3630 levels and resistance key is now likely to be seen at 3738, a move above could see Crude prices testing 3810
Yesterday in the session US data showed existing home sales rose 5.6% in November to annualized 5.81 million units, compared to a 2.4% rise in October to 5.48 million, while expected a 0.9% rise to 5.53 million. Also yesterday, the Senate passed the tax reform bill, and if the House of Representatives passes it as well today- as expected, it will go for President Donald Trump to sign into law.
While yesterday the Energy Information Administration released its report on US crude oil stocks, showing a drop of 6.5 million barrels in the week ending December 15, adding to the 5.1M drop in the previous reading, while analysts expected a 3.6M decline, with total stocks now dipping to 436.5 million barrels.
Read More: Crude Oil Expected Trade Zone 3642—3860 Levels
Otherwise, US gasoline stocks rose 1.2 million barrels, while distillate stocks, including heating fuel, fell 0.8 million barrels, remaining within the lower range on average in this time of year. Otherwise, the system of North Sea pipelines in Britain remains disrupted, while US output slowed down, in turn underpinning oil futures despite global oversupply concerns.
Also Baker Hughes reported a drop of 4 in the US oil rig count, the first such decline since the week ending November 3, to a current total of 747. – Neal Bhai Reports
