MCX CRUDEOIL : 13.01.2017

MCX CRUDEOIL : 13.01.2017


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Crudeoil on MCX settled up 0.67% at 3613 on reports key OPEC members were starting to cut production as promised and on forecasts of strong demand growth in China. The Organization of the Petroleum Exporting Countries agreed in November to cut oil production to try to reduce a global supply glut that has depressed prices for more than two years. Several OPEC members appear to be implementing the deal. Saudi Arabia has cut oil output to its lowest in almost two years, its energy minister said, as the world's largest oil exporter leads OPEC's drive to eradicate a global glut and prop up prices. Energy Minister Khalid al-Falih said output had fallen below 10 million barrels per day - more than it had promised as part of a global output cut deal between OPEC and non-OPEC producers. Such levels were last seen in February 2015, when Riyadh began to steeply raise production to deal a blow to U.S. shale oil producers, effectively becoming the architect of a prolonged oil price crash. Falih, speaking at the Atlantic Council Global Energy Forum in Abu Dhabi, said output was "not significantly below" 10 million bpd currently and the Kingdom planned to make even deeper cuts in February. Kuwaiti Oil Minister Essam Al-Marzouq told the conference Kuwait had already cut its oil output by more than it promised under the OPEC deal, without giving further details. Iraq Oil Minister Jabar Ali al-Luaibi told reporters Iraq was "hoping for a better price". Iraq had reduced its oil exports by 170,000 bpd and was cutting them by a further 40,000 bpd this week, he said. Technically now Crudeoil is getting support at 3560 and below same could see a test of 3508 level, And resistance is now likely to be seen at 3654, a move above could see prices testing 3696.