Mcx Crude oil commodity market prices in the US took negative clues from the inventory data wherein the DoE said crude supplies in the US rose 3.67 million barrels, marking its biggest weekly rise in five months which was backed by increasing imports and weak refinery utilization rate. In products, gasoline inventories fell at a better rate by 1.64 million barrels though distillate stocks increase moderately. If we look at the seasonal demand pattern in the US, summer driving season has officially ended wherein months of September-October usually are the lean seasons for oil products consumption. Thus we see overall implied demand for crude remaining weaker whereas seasonal decline is witnessed in gasoline during this period. With demand likely to stay weaker in the US in near-term; refinery utilization rate to continue declining and oil production staying higher; WTI prices should continue to trade subdued. The US DoE in its report also said crude production rose by 248,000 barrels a day to 8.838 MBPD during the week ended Sept he most since March 1986.
In the bright week, we are seeing WTI trading around 0.5percentage lower at opening meanwhile other commodities like, Bullion and Base metals too scaling lower currently. We may claim expectations over poor Chinese Manufacturing gauge is taking toll over commodities whereas broadly rising USD too hurt. This morning oil is seen trading at $91 down by 0.5percentage and looks like the same scenario may prolong in today’s trade. We recommend selling from higher levels on today’s trading session.
Global Market Snapshot: Obnoxious beginning of the week that everything is red this morning. We see Asian markets trading down with expectations over poor Chinese manufacturing number, Gold and silver trading at multi-months low, oil is trading down both at Brent and WTI and finally the non-ferrous metals are also down. At 7: 15 AM IST, the markets are trading at $1209, $17.40 for gold and silver. The WTI is at $91.38 and all the metals are down by around 1percentage this morning at LME.
Mcx Natural Gas commodity market trading held a cautious to moderately selling approach in the commodity last week though our intraday views were sometimes ruined by huge fluctuations over US weather forecasts. While volatility in the short-term is seen high, prices in intraday are expected to trade weak and we recommend selling on pullbacks today. Also we feel, traders need to be cautious for next two-three days as US CPC projects developments of huge warm temperatures in much of US East, South and Central region which if continues may infuse demand for coming days. In that case, buying from lower levels can also come in over next few days.
Sell Copper mcx Nov below 417.50 SL 420.50 Tgt 413.50
Sell Crude mcx Oct below 5630 SL 5660 Tgt 5550