MCX CRUDEOIL NEWS : 09.01.2017
Crudeoil on MCX settled up 1.27% at 3682 as output cuts by OPEC members met with lingering concern that other producers could try to shirk their share of planned decreases aimed at curbing global oversupply. Production cuts by OPEC kingpin Saudi Arabia and signs that it plans further trims have helped buoy the market. The Kingdom cut oil output in January by at least 486,000 barrels per day (bpd) to 10.058 million bpd, fully implementing an agreement by the Organization of the Petroleum Exporting Countries (OPEC) and other producers to curb a global supply glut. State oil giant Saudi Aramco has started talks with customers globally on possible cuts of 3 percent to 7 percent in February crude loadings. On Friday, a Kuwaiti oil official said that country had also reduced production in line with the deal, and there are also reports of supply cuts from Abu Dhabi. Still, doubts remained that all producers would fully implement planned reductions. "There will be some countries who will cheat...we expect zero compliance from Baghdad... And we definitely do not expect the Kurds to join in, given that they are autonomous from the federal government," Energy Aspects said in its 2017 oil market outlook. Overall supply from OPEC in December fell only slightly to 34.18 million barrels per day (bpd) from a revised 34.38 million bpd in November, according to a survey based on shipping data and information from industry sources. Technically market is under short covering as market has witnessed drop in open interest by -0.15% to settled at 8855 while prices up 46 rupee, now Crudeoil is getting support at 3644 and below same could see a test of 3607 level, And resistance is now likely to be seen at 3709, a move above could see prices testing 3737.
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Crudeoil on MCX settled up 1.27% at 3682 as output cuts by OPEC members met with lingering concern that other producers could try to shirk their share of planned decreases aimed at curbing global oversupply. Production cuts by OPEC kingpin Saudi Arabia and signs that it plans further trims have helped buoy the market. The Kingdom cut oil output in January by at least 486,000 barrels per day (bpd) to 10.058 million bpd, fully implementing an agreement by the Organization of the Petroleum Exporting Countries (OPEC) and other producers to curb a global supply glut. State oil giant Saudi Aramco has started talks with customers globally on possible cuts of 3 percent to 7 percent in February crude loadings. On Friday, a Kuwaiti oil official said that country had also reduced production in line with the deal, and there are also reports of supply cuts from Abu Dhabi. Still, doubts remained that all producers would fully implement planned reductions. "There will be some countries who will cheat...we expect zero compliance from Baghdad... And we definitely do not expect the Kurds to join in, given that they are autonomous from the federal government," Energy Aspects said in its 2017 oil market outlook. Overall supply from OPEC in December fell only slightly to 34.18 million barrels per day (bpd) from a revised 34.38 million bpd in November, according to a survey based on shipping data and information from industry sources. Technically market is under short covering as market has witnessed drop in open interest by -0.15% to settled at 8855 while prices up 46 rupee, now Crudeoil is getting support at 3644 and below same could see a test of 3607 level, And resistance is now likely to be seen at 3709, a move above could see prices testing 3737.
