Mumbai, 20 Mar (Commoditiescontrol): MCX crude oil experienced a decline of 2.03%, currently trading at 6800 levels, following yesterday's gains. The downturn is attributed to the strengthening U.S. dollar, which has dampened investor appetite and led to profit-taking as investors remain cautious ahead of the Fed meeting.
The commodity is currently below its pivot level of 6910, with initial support at 6864 and a secondary support at 6785. On the upside, resistance levels are identified at 6989-7035.
Meanwhile, oil prices globally are also edging lower, influenced by the strengthening U.S. dollar and profit-taking activities. However, the market sentiment remains positive due to signs of a tightening supply and demand balance.
According to analysts, supply risks related to Russian refined products continue to support the market, especially with the anticipation of further tightening in the second quarter following additional voluntary cuts from OPEC+. This tightening is evident in the forward curve, which is trading in deeper backwardation, indicating that future prices are lower than spot prices.
Brent crude is down 1% at $86.51 a barrel, while WTI is 1.1% lower at $81.84 a barrel, reflecting the overall sentiment in the oil market.
(By Commoditiescontrol Bureau: 09820130172)
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