Golden Investment Research (P) Limited
MCX crude oil declines on higher US inventories, resistance at $103-$104/bbl
MUMBAI (Commodity Online): Crude Oil futures are trading down on a more than expected US inventories and technical resistance. On Friday, MCX crude oil January contract is trading at Rs 5372 as of 12:28 PM IST after opening the day at Rs 5436, a decline of 1.30% for the day.
1. NYMEX crude oil February contract is trading down by $0.11 at $101.70 after hitting above $103/bbl last day.
-The Energy Information Administration (EIA) reported that US crude oil inventories had risen by 2.2 million barrels last week against market expectations of 900,000 barrels. This surprised investors.
-Crude oil also faces a technical resistance at $103-$104 area as shown in the chart below. This resistance together with the unexpected inventory buildup has turned market sentiment negative for the time being. But it remains to be seen how long traders are bearish considering that tensions in Iran has not subsided.
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