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Crudeoil on MCX settled up 3.13%

Posted on Nov 07, 2017 by kc_admin

Crudeoil on MCX settled up 3.13% at 3691 continued to surge in yesterday’s session tracking NYMEX Crude oil which jumped $1.71 to settled at $57.35/bbl, the highest in two years after a purge of royal family’s political rivals in Saudi Arabia. Saudi Arabia’s famed billionaire investor al-Waleed bin Talal was arrested and faces money laundering charges in a purge supposedly orchestrated by Crown Prince al-Salman. An anti-corruption drive led by Saudi Arabia Crown Prince Mohammed bin Salman resulted in wave arrests of prominent Saudi including royals, ministers and investors, fuelling political risk in the region. The anti-corruption crackdown comes as optimism grew for an extension to the output-cut agreement beyond March amid comments from Saudi energy minister Khalid al-Falih, who highlighted the importance of further cuts. “There is a general satisfaction with the strategy of 24 countries that signed a declaration of cooperation,” Khalid al-Falih said Friday. “Everybody recognises that (the) job is not done yet by any means, we still have significant amount of work to do to bring inventories down. Mission is not yet complete, more needs to be done,” he added. In the U.S. meanwhile, traders continued to cheer data pointing to tightening in production after Baker Huges reported Friday that the number of oil rigs operating in the US fell by eight to 729. 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. Technically market is getting support at 3625 and below same could see a test of 3560 level, And resistance is now likely to be seen at 3730, a move above could see prices testing 3770.

Trading Ideas:

#             Crudeoil trading range for the day is 3560-3770.

#             Crude oil gained as markets tightened, while Saudi Arabia’s crown prince cemented his power over the weekend through an anti-corruption crackdown that included high profile arrests.

#             In oil fundamentals, traders said that there were ongoing signs of tightening market conditions.

#             U.S. energy companies cut eight oil rigs last week, to 729, in the biggest reduction since May 2016