Gold Silver Reports – MCX Crude Oil Buy on Dips, Support Key Level 3900 — Technically Crude Oil market is under fresh buying as market has witnessed gain in open interest by 183.71% to settled at 9876 while prices up 60 rupees.
MCX Crude Oil is getting support key at 3900 and below same could see a test of 3866 levels and Resistance key is now likely to be seen at 4044, a move above could see prices testing 4110.
Crude Oil on MCX settled up 1.53% at 3972 amid expectations for further efforts to limitglobal oil output continued to support. Also supporting oil prices was a statement from the United Arab Emirates energy minister saying oil producers led by Saudi Arabia and Russia aimed to draft an agreement on a long-term alliance by the end of the year.
OPEC and some nonOPEC producers including Russia have been restraining production by 1.8 million barrels per day (bpd) to prop up prices. The arrangement expires at the end of 2018. However, surging U.S. production is offsettingthose efforts. U.S. crude output hit a record 10.27 million bpd last week, the Energy Information Administration said, making it a bigger producer than Saudi Arabia.
The commodity had already received a boost earlier in the week when Saudi Energy Minister Khalid al-Falih said his country will be “sticking” with itspolicy to withhold production throughout 2018. However, fears that rising U.S. output coulddampen OPEC’s efforts to rid the market of excess supplies have systematically limited oil prices’ gains recently.
The rally in oil prices was capped as the greenback regained some strength afterdata on Friday showed that U.S. homebuilding increased to more than a one-year high in January and that building permits soared to their highest level since 2007. – Goldman Neal Bhai Reports