Commodity market outlook - Mr. Vivek Gupta - Director Research - CapitalVia Global Research Limited
U.S. crude oil futures fell further below $103 early on Friday, putting the contract on course for its third straight weekly loss as geopolitical tensions in Iraq and Libya cooled to allay worries about petroleum supplies. OPEC expects its share of the world oil market to shrink in 2015 for a third year running, due in part to the U.S. shale oil boom. The U.N. atomic agency said on Thursday it believed nuclear material which Iraq said had fallen into the hands of insurgents was "low grade" and did not pose a significant security risk. We expect Crude oil to move down over higher gasoline inventories, easing fear in Iraq and Libya.
For the coming week 5900/5750 will act as major supports levels whereas 6200/6350 will act as major resistance in MCX Crude oil July futures. For the next week, trader can use sell on higher level strategy, if MCX Crude July future sustain below 6076 levels then it could test the levels 6010/5935.