Crude Oil - October 19, 2021 Outlook - Reliance Securities
2021-10-19 11:01:40 (Time Zone: IST)
Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities
International crude oil prices ended mixed on Monday.
WTI ended flat, while Brent in the red.
NYMEX heating oil and gasoline futures ended flat on Monday.
Domestic crude oil prices ended flat, tracking flat WTI prices, while energy index ended marginally weaker on Monday.
Oil prices pulled back after touching multi-year highs on Monday, as U.S. industrial output for September fell, while China reported its economy grew at a scanty 4.9% annual pace in July-September tempering early enthusiasm about demand.
Meanwhile, U.S. production from shale basins is expected to rise in November, according to a monthly U.S. report also weighed on market sentiment.
Total oil output from seven major shale formations was expected to rise by 76,000 bpd to 8.29 million bpd in the month.
China's daily crude processing rate in September fell to its lowest level since May 2020 as a feedstock shortage and environmental inspections crippled operations at refineries, while independent refiners faced tightening crude import quotas.
International oil prices have started weaker this Tuesday morning in Asian trade after weak data from U.S. and China raised fresh concerns about demand.
NYMEX Gasoline and Heating oil futures have also started weaker this Tuesday morning in Asian trade.
Investors will look to cues from inventories this week.
Technically, WTI Crude Oil November contract supports are at $81.56 and $80.69. Resistances are at $83.59 and $84.75.
Domestic crude oil prices could start weaker this Tuesday morning, tracking a weak start in overseas prices.
On the domestic front, MCX Crude Oil November resistances are at 6240 and 6335. Supports are at 6093 and 6041.
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