Energy Commodity Update by CapitalVia
Crude oil prices fell on Friday and are on track to decline for the third consecutive month as rising crude stockpiles in US and optimism over the nuclear deal between Iran and the western nations has kept oil prices under pressure. The OPEC members are likely to keep crude production quota unchanged at the meeting on February 4, while OPEC oil exports are expected to increase by 3% from current levels in February. Crude oil prices are expected to move down as all time high crude inventories in US and increased exports from OPEC is likely to put pressure on prices.
For the coming week 5550/5400 will act as major supports levels whereas 5900/6100 will act as major resistance in MCX Crude oil December futures. For the next week, trader can go for sell on higher level strategy, if MCX Crude December future sustain below 5752 levels then it could test the levels 5670/5550.