Crude Oil On MCX Settled Down -0.94 - Ways2Capital

On MCX settled down -0.94% at 3052 hit by concerns that a political rift between Qatar and several Arab states would undermine an OPEC-led push to tighten the market. Persistent gains in U.S. production also dragged on benchmark crude prices. The Arab world's biggest powers cut ties with Qatar on Monday, accusing it of support for Islamist militants and Iran. Steps taken include closing down transport links with Qatar and preventing ships coming from or going to the small peninsular nation.

That includes the port and docking area of Fujairah, in the United Arab Emirates, used by Qatari oil and liquefied natural gas (LNG) tankers to take on new shipping fuel. With production capacity of about 600,000 barrels per day (bpd), Qatar's crude output ranks as one of the smallest among the Organization of the Petroleum Exporting Countries, but tension within the cartel could weaken the supply deal aimed at supporting prices.

Worries over the outlook for OPEC's drive to rein in production come amid bulging supplies from elsewhere, especially the United States. U.S. crude production has jumped over 10 percent since mid-2016 to 9.34 million barrels per day (bpd) C-OUT-T-EIA, levels close to top producers Russia and Saudi Arabia.

Technically market is under fresh selling as market has witnessed gain in open interest by 1.11% to settled at 16510 while prices down -29 rupees, now Crudeoil is getting support at 3009 and below same could see a test of 2967 level, And resistance is now likely to be seen at 3106, a move above could see prices testing 3161.

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Suhani Verma

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