Crudeoil On MCX Settled Up 2.53%

Crudeoil on MCX settled up 2.53% at 3043 lifted by the first fall in U.S. drilling activity in months, although price gains were capped by reports of rising OPEC output last month even as the group has pledged to cut supply. Prices were also being supported by expectations of strong gasoline consumption on the July 4 holiday in the United States.

Iraqi oil minister Jabar al-Luaibi said on Monday he would wait for the outcome of OPEC's upcoming committee meeting before pronouncing on whether or not the group of producers needs to cut crude output more deeply or not. Al-Luaibi, who was asked if the Organization of the Petroleum Exporting Countries needed to deliver a more aggressive cut than the 1.8 million barrels per day it has agreed with 11 of its partners, was speaking at an event in London.

OPEC and allied non-OPEC producers agreed on May 25 to extend an existing supply cut into 2018, but oil has fallen sharply since then on rising production from the United States and from Nigeria and Libya, two OPEC members exempt from cutting output. Oil ministers from five countries monitoring the deal plus Saudi Arabia as OPEC president are scheduled to meet in Russia on July 24.

They could make a recommendation to the wider group, which holds its next meeting in November, on adjusting the pact. Technically market is under short covering as market has witnessed drop in open interest by -14.33% to settled at 15983 while prices up 75 rupees, now Crudeoil is getting support at 2995 and below same could see a test of 2948 level, And resistance is now likely to be seen at 3068, a move above could see prices testing 3094.

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Suhani Verma

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