Gold Silver Reports (GSR) – Crude Oil on MCX settled down -3.28% at 3749 as signs of a spreading global economic slowdown stoked concerns over future fuel demand. China’s state planner warned that the downward pressure on the economy will affect China’s job market as falling factory orders point to a further drop in activity in coming months and more job shedding.
In a sign of spreading economic weakness, South Korea’s export-oriented economy slowed to a six-year low growth rate of 2.7 percent in 2018, official data showed. This came after the International Monetary Fund trimmed its 2019 global growth forecast to 3.5 percent, down from 3.7 percent in last October’s outlook.
Crude MCX support @ 3749 and below same could see a test of 3655 levels and resistance @ 3888 Level, above could see prices testing 3944.
Despite the darkening outlook, oil prices have been getting some support from supply cuts started in late 2018 by the Organization of the Petroleum Exporting Countries (OPEC).
While fears of the current global economic slowdown, particularly in the world’s second largest economy and biggest oil importer, have raised concerns over the strength of demand, bulls point to the output reductions recently implemented by OPEC and the recent weakness of U.S. drilling activity.
