Gold Silver Reports ~ Crude MCX settled down -1.72% at 2457 extending losses as a monthly report from OPEC provided further signals of a widening gap between supply and demand on energy markets worldwide.
♦ Crude MCX prices have quickly fallen back to 10-day lows just two sessions after surging to their highest level since early-December. The sell-off has exacerbated fears among investors that a six-week rally may be nearing its completion.
♦ Crude MCX prices continued to slide, in spite of a slight reduction in OPEC production last month. In its monthly oil market report released on Monday, OPEC said its output decreased by 175,000 to 32.28mbpd in February, mainly due to pipeline disruptions in Iraq and Nigeria. Production in Saudi Arabia, held steady at 10.22mbpd. Market appeared more concerned with the growing imbalance between supply and demand, amid indications for lower than expected refinery demand in Asia during the spring maintenance season and slowing economic report in Latin America.
♦ As a result, OPEC lowered its demand report for 2016 by 90,000 to 31.52mbpd. Iran, meanwhile, increased production by more than 40,000 bpd in February to 3.39mbpd, slightly above monthly estimates from secondary sources.
♦ Over the weekend, Iran oil minister Bijan Zanganeh said his nation would be unwilling to agree to terms of a coordinated OPEC-Non OPEC output freeze until its production reaches pre-sanction levels of 4 million bpd. Separately, three OPEC sources said an emergency meeting aimed at stabilizing prices will likely be held in Doha in mid-April. Now Investors await the release of Wednesday’s government report could show that Crude MCX stockpiles increased by 3.4mbls for the week ending on March 11.
♦ Technically market is getting support at 2424 and below same could see a test of 2404 level, and resistance is now likely to be seen at 2482, a move above could see prices testing 2525. ~ Neal Bhai Reports