Crude Oil - Oct 18, 2021 - Outlook - Reliance Securities
2021-10-18 11:47:59 (Time Zone: IST)
Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities
International crude oil prices ended higher on Friday. NYMEX heating oil and gasoline futures ended in the green on Friday.
Domestic crude oil prices ended in the green, tracking firm overseas prices, while energy index ended flat on Friday.
Prices took supported boosted by forecasts of a supply deficit in the next few months as the easing of coronavirus-related travel restrictions spurs demand.
The White House said it will lift COVID-19 travel restrictions for fully vaccinated foreign nationals effective Nov. 8, which should boost jet fuel demand.
Meanwhile, a sharp drop in oil stockpiles in the United States and the member countries of the Organisation of Economic Co-operation and Development is expected to keep global supply tight.
U.S. oil rigs rose 12 to 445 this week, their highest since April 2020.
Money managers raised their net long U.S. crude futures and options positions by 14,871 contracts to 340,449 in the week to October 12, data from U.S. CFTC showed.
International oil prices have started higher this Monday morning in Asian trade boosted by forecasts of a supply deficit in the next few months as the easing of coronavirus-related travel restrictions spurs demand.
NYMEX Gasoline and Heating oil futures have also started higher this Monday morning in Asian trade.
Technically, if WTI Crude Oil trades above $82.00 the markets could continue its upward momentum up to the resistance zones at $83.03-$83.98 levels. Support zones is at $81.50-$81.00 levels.
Domestic crude oil prices could start with gains this Monday morning, tracking a positive start in overseas prices.
On the domestic front, if MCX Crude Oil October trades above 6180 the markets could continue its upward momentum up to the resistance zones at 6220-6290 levels. Support zones are at 6140-6080 levels.
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