Crude oil declined on Wednesday, weighed down by mixed US inventory data and a persistent outlook for oversupply - Hdfc Securities Ltd
GLOBAL MARKET ROUND UP
Bullion rebounded on Wednesday buoyed by haven demand, and investors weighed the outlook for the Federal Reserve’s interest rate path following data that showed some stabilization in the job market. Prolonging the U.S. government shutdown has become the longest in U.S. history, and there is still no resolution in sight. This shutdown has created uncertainty in financial markets and is providing a boost to precious metals.
On the other hand, despite private-sector payrolls in the US increasing by 42,000 after two straight months of declines, traders expect an overall weaker trend in hiring, making another interest-rate cut by the Fed more likely, which would also provide a boost for bullion.
Crude oil declined on Wednesday, weighed down by mixed US inventory data and a persistent outlook for oversupply. A US government report on Wednesday showed US crude inventories rose by 5.2 million barrels last week, while gasoline stockpiles fell to a three-year low, with Midwest levels at a record bottom. The global oil market faces an estimated surplus of 1.74 million barrels a day this quarter, up from 400,000 barrels a day between July and September, which indicates the market remains oversupplied and has a negative impact on oil prices.
Natural gas pulled back from a recent high, ending a five-day winning streak, as traders considered mixed forecasts for mid-November and substantial supply levels. Focus has now turned to today’s weekly storage report.
Copper continued its decline from a record high, influenced by a strong US dollar, while top producer Codelco alleviated concerns regarding supply issues. Most other industrial metals also saw minor declines, impacted by a strong US dollar and a technical correction following a recent rally
Gold
• Trading Range: 119200 to 122300
• Intraday Trading Strategy: Buy Gold Mini Dec Fut at 120125-120150 SL 119580 Target 120900/121450
Silver
• Trading Range: 146300 to 152080
• Intraday Trading Strategy: Buy Silver Mini Nov Fut at 148050-148075 SL 146350 Target 149780/151300
Crude Oil
• Trading Range: 5175 to 5450
• Intraday Trading Strategy: Sell Crude Oil Nov Fut at 5355 SL 5425 Target 5275/5250
Natural Gas
• Trading Range: 365 to 394
• Intraday Trading Strategy: Buy Natural Gas Nov Fut at 374-375 SL 367.80 Target 384/387.0
Copper
• Trading Range: 988 to 1015
• Intraday Trading Strategy: Sell Copper Nov Fut at 1009-1010 SL 1014.0 Target 1001/997
Zinc
• Trading Range: 297 to 306.80
• Intraday Trading Strategy: Buy Zinc Nov Fut at 300.0 - 300.50 SL 297.5 Target 304.0/305.8.
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