¤¤¤{CREDE OILL REVIWE}¤¤¤ Crude oil registered its worst single session performance this year with the commodity sliding lower by 6.65% to $72.60 for Jan expiry Brent while WTI oil too tumbled 6.3% to $69 per barrel in electronic trading In India, MCX Crude active contract settled with a similar los with falling by 6.3% to Rs 4290 per barrel . ¤¤¤ { Outlook: }¤¤¤¤ Looking into commodities, it was all about OPEC meeting wherein the group left its forecasts for oil production unchanged at 30 MBPD and thus we saw one of the biggest slide in a single session in oil internationally with Brent and Indian MCX closing lower by around 6.5% each. WTI which was only trading in electronic session due to Thanksgiving Day holiday too slipped as of opening trade on Friday. Bloodbath is visible though both international contracts are stable as of Friday opening trade with WTI and Brent seen at $69 and $72.50 per barrel, a making a fresh low since 2010. OPEC’s decision to leave the production quote steady pushed the sentiment that OPEC and mainly Saudi Arabia should no longer be seen as a swing producer and mainly that OPEC is counting an out-right war against the so called Shale producers in the US. In intraday, commodity is expected to continue to bearish bias however, after such big rout in 1 session, probably volatility may increase and thus we recommend only momentary trades with negative bias today. ¤¤¤{{ OPEC Meeting Update: }} ¤¤¤ Ali Al-Naimi, Saudi Arabia’s oil minister, confirmed that no action had been taken on output after the meeting of the 12 OPEC members. The group considered a production cut of 5%, according to Iraqi Oil Minister Adel Abdul Mahdi. That’s about 1.5 million barrels a day based on the current ceiling however no action was taken at immediate effect pushing prices lower. Note that the group took this hard stance despite some other members like Venezuela calling for a cut as markets was perceived to be oversupplied by about 2 MBPD Brent oil fell in late evening session as updates from OPEC started coming. {{Global Market Analysis: }} Asian markets are trading on a mixed to moderately positive note this morning while US markets remained closed for Thanksgiving on Thursday. The release of the statement from OPEC in which they have not announced any cut in production triggered a steep fall in the oil price whereas effect was visible on some other non-agri commodities as well. In terms of currency, Asian currencies are trading on a negative note with respect to the dollar. US dollar index has appreciated in a low volume trading session yesterday. US dollar index has pulled itself above the 88 level and is currently hovering at 88.10 level. Economic data from the UK, German and EU economies would have a considerable impact in their respective currencies in today’s session, though no major data is due from the US. We also have Indian GDP and fiscal deficit to be released today which may make INR volatile and thus impact trading in some MCX commodities.
Posted on: Fri, 28 Nov 2014 04:48:31 +0000
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