MCX crude near its resistance zone; OPEC lifts its crude oil demand forecast for 2023 to 2
时间:2024-05-18 12:03:53 阅读(143)
By Bhavik Patel
Oil bulls are back with a bang as the market sentiment has shifted to positive note with inflation in the U.S. slowing dramatically and markets tightening on the back of supply disruptions and production cuts. Until now, the market was only looking at the consumption side but now concerns are emerging regarding the supply side. Oil production has been stopped at Libya’s 70,000 b/d El Feel oilfield on Thursday after tribal protests over the kidnapping of a former finance minister grew into larger unrest that could soon impact the adjacent El Sharara field.
Demand side is also expected to be stable as according to OPEC reports, OPEC has lifted its crude oil demand forecast for 2023, to 2.4 million barrels per day (bpd), according to the group’s latest Monthly Oil Market Report (MOMR) released on Thursday. OPEC’s expectation for this year’s oil demand is an upward revision of 100,000 bpd from last month’s forecast. We had also previously reiterated that there is disparity between prices and fundamentals where the market is clearly looking on the consumption side anticipating that demand will weaken due to recession fears but demand till date is strong from Asia. Now OPEC has also acknowledged that we may see a soft landing in the US and no chance of recession in 2023. Both supply constraint and steady demand had led to recovery in oil prices.
In MCX, crude is now near its resistance zone. We have seen since July 2022 that crude prices have failed to clear the 200-day moving average. It has faced resistance multiple times and been corrected. Now once again it is near its 200-day moving average on a daily scale and so we expect correction from the current juncture. Correction is also due as we have seen non-stop rally in crude for the past 7 trading sessions so both price-action wise and hurdle of the 200-day moving average suggest pullback from prices. 6050 is the support zone where one can initiate a long position with expected price of 6300 and stoploss of 5900. Anyone who has taken a long position can book profit and wait for corrections to take a fresh long position.
(Bhavik Patel- Commodity and currency analyst at Tradebull Securities. Views expressed are the author’s own. Please consult your financial advisor before investing.)
上一篇:ABB India shares jump nearly 10 per cent post earnings
下一篇:Will Nifty rise in trade or slip below 18300- Check 7 things to know before share market opens
猜你喜欢
- Crude oil price falls, unexpected build in crude, fuel inventories in US ignites demand concerns
- Adani Enterprises stock falls nearly 2%; All Gautam Adani group stocks plunge except Adani Transmission
- Confused, surprised with investor interest in F&O- Sebi chairperson
- Crude oil prices rally takes a breather ahead of Fed, ECB rate hikes
- Adani stocks are getting no love from India’s money managers
- Crude oil heads for weekly loss awaiting China recovery signs
- Stocks to watch- SBI, NBCC, InterGlobe Aviation, Reliance ,Vedanta, IRCTC, HDFC Bank
- Stocks To Watch- Ashok Leyland, TCS, Adani Green Energy, Tata Steel, ONGC, Nazara Technologies, Vedanta
- Stock to buy- Deepak Fertilizers share price up 48% YTD; analysts see 52% further jump in fertiliser stock