Commodities

Crude Oil - March 29, 2021 - Reliance Securities



Posted On : 2021-03-30 08:42:18( TIMEZONE : IST )

Crude Oil - March 29, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

International oil prices rose on Monday after Reuters reported that Russia would support stable oil output from OPEC+ ahead of a meeting with the producer group later this week.

Domestic crude prices rose on Monday, tracking weak overseas prices.

Prices had fallen earlier in the session on news that a container ship in the Suez Canal blocking traffic for nearly a week had been refloated.

Reuters reported that they expect a decision similar to the last meeting when OPEC+ meets on April 1 to decide output policy.

Russian oil and gas condensate output increased to 10.22 million barrels per day (bpd) in the period March 1-28 from 10.1 million bpd in February Reuters reported.

The oil rig count, an early indicator of future output, rose by 6 to 417 in the week to March 26, its highest since April last year, energy services firm Baker Hughes said.

On the speculative side, CFTC data showed that Money managers cut their net long U.S. crude futures and options positions by 20,649 contracts to 390,460 in the week to March 23.

International oil prices have started weaker this Tuesday morning in Asian trade as shipping traffic resumed through the Suez Canal after days on hold.

Attention switched to an OPEC+ meeting this week where the extension of supply curbs may be on the table amid new coronavirus pandemic lockdowns.

Technically, WTI Crude Oil has bounced back from $59.40 and could see further a bullish momentum up to $61.90-$63.00 levels.

Domestic crude could start weaker this Tuesday morning, tracking international prices.

Technically, if MCX Crude Oil April trades above 4450, we could see bullish momentum up to 4507-4570 levels.

NYMEX Natural gas prices moved higher on Monday as the supply chain disruption in the Suez Canal generated LNG supply disruptions.

Domestic natural gas ended higher on Monday, tracking overseas prices.

However, U.S. demand continues to decline as the heating season comes to a close. Total U.S. consumption of natural gas fell by 5.6% compared with the previous report week.

On the speculative side, CFTC data showed that natural gas speculators cut their net long natural gas futures and options positions by 7,694 contracts to 204,117 in the week to March 23.

International natural gas futures have started stronger this Monday morning in Asian trade.

Technically, NYMEX Natural Gas could trade in a range of $2.550-$2.750 levels.

Domestic natural gas could start stronger this Monday morning, tracking overseas prices.

Technically, MCX Natural Gas April holds resistance near 193-197 levels where it holds a support near 191-188 levels.

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Source : Equity Bulls

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