MCX CRUDEOIL NEWS : 10.01.2017
Crudeoil on MCX settled down -2.93% at 3574 as indications of increased drilling activity in U.S. offset signs OPEC members are adhering to planned output cuts. However, some traders remain skeptical that the planned cuts will be as substantial as the market currently expects. Last week, U.S. energy companies added oil rigs for a 10th week in a row to 529, Baker Hughes data showed, extending a recovery in activity into an eighth month. In Iraq, OPEC's second-biggest producer, oil exports from the southern Basra ports reached a record high of 3.51 million barrels per day (bpd) in December, the oil ministry said. Although Iraq's oil minister added the country would still comply with an agreed output cut of 210,000 bpd from January. Sources also told Reuters that Iraq's State Oil Marketing Company (SOMO) had given three buyers in Asia and Europe full supply allocations for February. Russia cut its oil production in early January after an agreement with OPEC to cap global crude output, two people from the energy sector told. In the week ahead, market participants will eye fresh weekly information on U.S. stockpiles of crude and refined products on Tuesday and Wednesday to gauge the strength of demand in the world’s largest oil consumer. Traders will also continue to pay close attention to comments from global oil producers for further evidence that they are complying with their agreement to reduce output this year. Technically market is under fresh selling as market has witnessed gain in open interest by 32.2% to settled at 11706 while pices down -108 rupee, now Crudeoil is getting support at 3534 and below same could see a test of 3494 level, And resistance is now likely to be seen at 3644, a move above could see prices testing 3714.
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Crudeoil on MCX settled down -2.93% at 3574 as indications of increased drilling activity in U.S. offset signs OPEC members are adhering to planned output cuts. However, some traders remain skeptical that the planned cuts will be as substantial as the market currently expects. Last week, U.S. energy companies added oil rigs for a 10th week in a row to 529, Baker Hughes data showed, extending a recovery in activity into an eighth month. In Iraq, OPEC's second-biggest producer, oil exports from the southern Basra ports reached a record high of 3.51 million barrels per day (bpd) in December, the oil ministry said. Although Iraq's oil minister added the country would still comply with an agreed output cut of 210,000 bpd from January. Sources also told Reuters that Iraq's State Oil Marketing Company (SOMO) had given three buyers in Asia and Europe full supply allocations for February. Russia cut its oil production in early January after an agreement with OPEC to cap global crude output, two people from the energy sector told. In the week ahead, market participants will eye fresh weekly information on U.S. stockpiles of crude and refined products on Tuesday and Wednesday to gauge the strength of demand in the world’s largest oil consumer. Traders will also continue to pay close attention to comments from global oil producers for further evidence that they are complying with their agreement to reduce output this year. Technically market is under fresh selling as market has witnessed gain in open interest by 32.2% to settled at 11706 while pices down -108 rupee, now Crudeoil is getting support at 3534 and below same could see a test of 3494 level, And resistance is now likely to be seen at 3644, a move above could see prices testing 3714.
