MCX CRUDEOIL NEWS : 12.01.2017
Crudeoil on MCX settled up 2.16% at 3589 boosted by a weaker U.S. dollar following a news conference by U.S. President-elect Donald Trump and on news that Saudi Arabia had cut exports to Asia. Crude oil trader ignored the government data showing a bigger-than-expected weekly build in U.S. crude and fuel inventories. Yesterday crude oil inventory report published by the U.S. Energy Information Administration late on Wednesday implied ongoing oversupply as inventories unexpectedly rose by 4.1 million barrels to 483.11 million barrel. However, record U.S. refinery runs of 17.1mbpd, up 418,000 bpd on the week, indicated strong demand, preventing bigger price falls. Outside the United States, emerging detail of Saudi supply cuts as parts of efforts by the OPEC and other producers like Russia to curb the global supply glut started to emerge. Despite some February supply reductions to China, India and Malaysia, top crude exporter Saudi Arabia is likely to focus its cuts on Europe and the United States, shielding its biggest customers in Asia. In another indicator that there is still plentiful supply available despite the cuts, traders are ceasing the opportunity of higher crude prices following OPEC's decision to cut output to send record volumes of 22 million barrels of surplus European and Azerbaijani oil to Asia. Technically market is under short covering as market has witnessed drop in open interest by -15.5% to settled at 9608 while prices up 76 rupee, now Crudeoil is getting support at 3513 and below same could see a test of 3436 level, And resistance is now likely to be seen at 3632, a move above could see prices testing.
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Crudeoil on MCX settled up 2.16% at 3589 boosted by a weaker U.S. dollar following a news conference by U.S. President-elect Donald Trump and on news that Saudi Arabia had cut exports to Asia. Crude oil trader ignored the government data showing a bigger-than-expected weekly build in U.S. crude and fuel inventories. Yesterday crude oil inventory report published by the U.S. Energy Information Administration late on Wednesday implied ongoing oversupply as inventories unexpectedly rose by 4.1 million barrels to 483.11 million barrel. However, record U.S. refinery runs of 17.1mbpd, up 418,000 bpd on the week, indicated strong demand, preventing bigger price falls. Outside the United States, emerging detail of Saudi supply cuts as parts of efforts by the OPEC and other producers like Russia to curb the global supply glut started to emerge. Despite some February supply reductions to China, India and Malaysia, top crude exporter Saudi Arabia is likely to focus its cuts on Europe and the United States, shielding its biggest customers in Asia. In another indicator that there is still plentiful supply available despite the cuts, traders are ceasing the opportunity of higher crude prices following OPEC's decision to cut output to send record volumes of 22 million barrels of surplus European and Azerbaijani oil to Asia. Technically market is under short covering as market has witnessed drop in open interest by -15.5% to settled at 9608 while prices up 76 rupee, now Crudeoil is getting support at 3513 and below same could see a test of 3436 level, And resistance is now likely to be seen at 3632, a move above could see prices testing.
