MCX Crudeoil Tips and Forecast: Crude Oil 7610 To 7831
Today’s crude oil profit — 44,200 in 2 Lots
Neal Bhai Reports (M) — 9899900589 and 9582247600
Having found buyers just above the $94 threshold, WTI prices are rebounding firmly amid a moderately positive risk sentiment and reports that Saudi Arabia is mulling hiking oil prices to record highs.
The world’s top crude exporter Saudi Arabia is considering raising the price of its flagship crude to Asia at a record differential for September despite weak physical demand.
According to the Bloomberg survey, “Saudi is expected to price its Arab Light crude to Asia at a $10.80-a-barrel premium to the region’s benchmark for September-loading cargoes.”
Saudi Aramco is set to release its official selling prices for September next week. The oil price hike under consideration could suggest a potential turning point for the market.
Despite the latest upswing in the black gold, the further upside appears elusive heading into the expected Fed 75 bps rate hike decision. Additionally, looming recession fears, courtesy of the worsening European gas crisis, China’s covid lockdown and global central banks’ tightening spree, also limit the bullish attempts in the US oil.
At the time of writing, WTI is trading at $95.50, retreating from daily highs of $95.88, still up 0.75% on the day.
According to preliminary readings from CME Group for crude oil futures markets, traders scaled back their open interest positions by just 81 contracts on Tuesday, reversing at the same time four daily builds in a row. On the other hand, volume rose by around 13.5K contracts for the first time after four consecutive daily drops.
Prices of the WTI kept the familiar range on Tuesday and closed with modest losses just above the 200-day SMA, today at $94.87. The downtick was accompanied by a small drop in open interest, which could leave prospects for further consolidation well in place for the time being.
US interest rate futures see fed funds rate 3.4% in December after 75 bps hike; see 107 bps of tightening for the rest of 2022