Crude Oil producing countries organization OPEC which is almost 40 percent oil supplier of Today consumption of Crude oil has said the production of crude oil will not be decreased whether the price will decline. According to information received from sources OPEC Countries have produced 315.10 million barrels Crude oil on daily basis during July, which is 15.10 million barrels over from their set target of 300 million barrels oil. After this statement of OPEC crude oil may show up $ 40 level soon.
History: Crude oil was rolled up $ 30 In 2009
Crude oil prices had witnessed strong volatility in 2008-09. In July 2008 crude oil prices rose to above $ 147 a barrel in global markets, but then start a declined trend in it and from August 2008 to March 2009, the price has dropped more then $ 115 and come out to the $ 30 per barrel level in global markets. During that crude oil prices declined and had arrived to Rs 1,700 per barrel in the domestic market. In the overseas market some selling similar trend lines is being seen this year also.
Fears of a fall in demand from China
China’s second largest oil consumer in the world, and there are not better off financially and because of this scenario demand for crude oil is expected to decline in China. During July there has a sharp decline seen in foreign trade in China. According to data released last Saturday by the China Export and import declined during July. While Earlier in June, the exports from China had increased somewhat but remained a decline in imports. Exports from China declined by 1 percent in July, while imports declined by 8 percent.
MCX Crude Oil Call
MCX Aug Crude futures rose to as high as 2913 levels, but failed to hold the gains and fell sharply towards the day low of 2780 levels by forming a “bearish engulfing” on daily charts. This development can drag the prices further down towards 2736 & 2675 levels. Hence, any rise can be limited at 2813 levels.
We suggest to Sell Crude oil around 2813 level for the target of 2736 and 2675 with a stop loss at 2861
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