Moneycontrol Be a Pro
Get App
Last Updated : Jun 10, 2019 11:39 AM IST | Source: Moneycontrol.com

Crude oil to remain rangebound; buy gold on dips: Reliance Commodities

Oil prices are expected to remain range bound, the MCX Crude June 2019 contract for the week is expected to move in the range of Rs 3,650-3,700

Moneycontrol Contributor @moneycontrolcom
Representative image
Representative image

Pritam Kumar Patnaik

Last week, oil prices saw some recovery after harrowing few weeks, when it had corrected close to 16 percent. The fall in crude prices was primarily due to trade tensions between US and China, economic growth concerns, dwindling demand and building of inventories.

Adding to the woes was the US's threat to impose tariffs on imports from Mexico unless Mexico acts to stop the flow of illegal immigrants across the border. But news of a possible delay in imposition of the tariff on Mexican imports let to recovery in crude prices. Both the US and Mexican governments seem to have reached some agreement on the migrant issue.

Close

Meanwhile on the supply side, US crude, gasoline and distillate stocks rose over the last few weeks. Crude inventories rose 6.8 million barrels, compared with analyst expectations for 849,000 barrel drawdown, to their highest since July 2017 and about 6 percent above the 5-year average for this time of year.

Furthermore, undermining OPEC's efforts to tighten the market has been surging US output to record highs, leading to more of its crude being exported. US crude production added another 1,00,000 bpd to a new peak at 12.4 million bpd.

Looking ahead, the market is looking towards the upcoming OPEC meet for clearer direction. For the week, Brent August 2019 contract on ICE could remain within the range of $57-65 per barrel, while NYMEX July 2019 contract could remain around $50-56 per barrel.

Base metals:

Copper: Buy on dips. Buy MCX Copper June 2019 contract is in the range of Rs 404-405 with a stop loss of Rs 399 and a target price of Rs 415.

Nickel: Buy on dips. Buy MCX Nickel June 2019 contract in the range of Rs 840-845 with a stop loss of Rs 825 and a target price of Rs 890.

Aluminium: Sell MCX Aluminium June 2019 contract in the range of Rs 143-144 with a stop loss of Rs 146 and a target price of Rs 138.

Bullions:

Gold: Buy on dips. Buy MCX Gold August 2019 contract in the range of Rs 32,550-35,600 with a stop loss of Rs 32,400 and a target price of Rs 33,000.

Silver: Buy MCX Silver July 2019 contract in the range of Rs 37,000-37,050 with a stop loss of Rs 36,600 and a target price of Rs 37,800.

Energy

Crude Oil: Buy MCX Crude June 2019 contract in the range of Rs 3,650-3,700 with a stop loss of Rs 3,550 and a target price of Rs 3,900.

Agri commodities:

MCX Mentha Oil: Sell MCX Mentha oil June 2019 contract in the range of Rs 1,333-1,335 with a stop loss of Rs 1,370 and a target price of Rs 1,250.

The author is Head, Commodities at Reliance Commodities

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.​

 

The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .
First Published on Jun 10, 2019 11:39 am
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant