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Crude Oil

Observations

Crudeoil trading range for the day is 5790-6192. Crude oil prices rise due to geopolitical tensions and supply outages in Libya. Saudi Arabia reduces the February official selling price of its primary Arab Light crude for Asia to the lowest in 27 months. US crude oil output declines in October, the first monthly decline since April. US Secretary of State Anthony Blinken landed in Israel to outline measures to secure safe passage in the Red Sea.

BUY CRUDEOIL JAN @ 5960 SL 5860 TGT 6060-6150. MCX

Natural Gas

Observations

Naturalgas trading range for the day is 220.3-299.5. Natural gas rose due to lower output and forecasts of extremely cold weather. Extreme cold may hamper production due to freezing equipment. Average gas output fell to 107.7 bcfd so far in January, down from a monthly record of 108.5 bcfd in December. U.S. gas demand in the Lower 48, is forecasted to rise from 137.2 bcfd this week to 158.4 bcfd next week.

SELL NATURALGAS JAN @ 275 SL 280 TGT 267-260. MCX