MCX Crude Commodity Trading we saw that good jump up in prices on Wednesday as its oversold natures and anticipation of better inventory report from the DoE helped. However, that day too, only WTI was the major gainer with Brent continuing to hold near the four year low. As per the report, crude inventory rose by 460,000 barrels against expectations of a rise over 2 million barrels. We feel the single session gains backed by better data has given enough leeway to bears to start selling afresh and the same aspect was witnessed yesterday. As of Friday morning cues, Brent prices are headed for a seventh weekly drop WTI too slumped amidst overall extended ease in provide internationally. Besides put in to woe, official from Libya said they are planning to resume production from its biggest field that was halt after and molest, an representative said all through the center of this week. We hold selling bias in crude today and recommend selling the same on pullbacks.WTI for December expiry fell once again with black liquid losing around 1percentage to $77.90 per barrel while the backwardation between active Dec-Jan contracts remained at multi-month lows near 5 cents currently. In the other market, Brent for December settlement was flattish yesterday to $82.85 per barrel whereas locally, MCX crude which is following the WTI slid 0.4percentage to Rs 4815 after adjusting with the overall movement in oil in last couple of days. Today we may see moderate lower opening in MCX oil
Global Market View: Today morning Asian equity markets are trading on a positive note following positive US markets amidst mixed cues out of midterm election results and ECB policy meeting outcome. In major economic events that the world was waiting, ECB meeting was there wherein t he bank kept main rates unchanged however ECB president said the bank could take further steps to improve growth and inflation while indicated around 1 trillion worth of Euros could be pumped into the economy if required. In terms of currency, Asian currencies are trading on a depreciating note with respect to the dollar. US dollar index rallied yesterday as comments from ECB head pushed Euro lower towards 1.2400 marks while USDX jump to 88.00 levels.
The US EIA said weekly stocks for natural gas increased by91 BCF for the week ending October 31, way higher than markets expectations of an increase in the range of 75 to 85 BCF. Nevertheless, prices extended its gains as early arrival of winter chill in the US was pushing the case that heating demand would rise substantially in near-term. NG prices are higher by around 25percentage in the past eight trading days, the greatest appealing splash this year, as temperature forecasters said a blast of Arctic air may push temperatures to at least 10 degrees below normal next week across much of the US. We have a ranged trade today though overall bias due to weather developments stay positive in near-term.
Sell Silver Mcx below Dec 34750 SL 35200 Tgt 33650
Sell Crude Mcx below Nov 4805 SL 4855 Tgt 4670