Energy Commodity Update by CapitalVia
Syrian oilfields resuming operations and its President Bashar al-Assad agreeing to inspection of chemical weapons facilities, crude oil supplies worries have eased.
This should see prices dropping. Libya's crude oil production has recovered to 620,000 barrels per day (bpd), compared with its pre-war capacity of 1.6 million bpd, after protesters agreed to reopen major western fields. Output had collapsed to below 200,000 bpd in a stalemate between protesters and the government that lasted over a month.
So, for the coming week 6400/6250 will act as major supports levels whereas 6872/7000 will act as major resistance in MCX Crude oil October futures. For the next week, trader can go for sell on higher level strategy, if MCX Crude October future sustain below 6600 levels then it could test the levels 6530/6400.