Overview on why ther is downfall of prices in Market

The downfall of prices in Market 

Crude Oil:

Crude oil lost -5.45% to close at 4233 yesterday. Crude oil fell yesterday due to concerns over new restrictions on the epidemic and reduced fuel demand from a slow vaccine rollout. 

Producers cut prices, indicating an adequate oil supply. OPEC + compliance with oil production cuts rose to 113% in February, two OPEC + sources from the producer group reported. 

This figure compares with a January compliance figure of 103% US energy firms added the most oil and natural gas rigs in a week since January, even as oil prices rebounded from recent 28-month highs. 

The oil and gas rig count, an early indicator of future output, rose from nine to 411 in the week to March 19, its highest since April, the energy services firm Baker Hughes Company said in its report.

The Commodity Futures Trading Commission (CFTC) said on Friday that money managers increased their net long US crude futures and options positions by 16 March in the week.

The bookmaker group raised its combined futures and options positions in New York and London from 3,232 contracts to 411,107 during this period. 

The data excludes merchant positions in the NYMEX Financial Crude Oil Futures Contract, which is typically included in our aggregate calculations. Data was not provided by CFTC.

Technically the market is subject to fresh sales as the open interest rate in the market has risen 56.61% to close at Rs 4775 while prices have fallen by Rs 244, now crude oil is getting support at 4145 and below test level of 4058 Can be found. And resistance can now be seen at 4383, a step above can test 4534 prices.

Business Idea:

The crude oil trading range for the day is 4058-4534.

Crude oil prices have fallen into concern that new restrictions on the epidemic in Europe and a slow vaccine rollout will reduce fuel demand.

OPEC + compliance with oil cuts rises to 113% in February.

American drillers add most oil and gas rigs a week since January.

Zinc:

Zinc futures were down -1.67% to close at 217.75 yesterday. The decline in zinc prices was seen as Germany re-filling beds with ICUs after Germany postponed plans to extend and reopen lockdown measures until 18 April. 

In his speech prepared for the hearing of the US House of Representatives, the Federal Reserve Chairman Powell said that the recovery is far from complete and the Fed will continue to support.

In addition, the Biden administration is expected to pursue a $ 3 trillion economic development plan this week, including infrastructure and tax hikes aimed at boosting the economy, reducing carbon emissions and economic inequality.

The United States and its allies have successfully imposed sanctions against China for human rights issues, and China immediately implemented retaliation against the European Union and sought to strengthen ties with North Korea and Russia. 

According to the latest customs figures, zinc consent imports declined by 13,000 million tonnes in January-February 2021 as compared to the same period last year. 

The pattern of tight mineral supplies did not change, and social inventions declined again, providing support for zinc prices. However, international trade relations still need to be cautious.

Technically the market is subject to long-term liquidation as the open interest rate in the market has fallen by 22.45%, which closed at 1275 while prices have fallen by -3.7, now supporting zinc at 216.6 And below 215.4 level test can be seen and resistance can now be seen at 219.6, a step above can test the prices of 221.4.

Business Idea:

The zinc trading range for the day is 215.4-221.4.

Zinc prices fall after Germany postpones plans to extend and reopen lockdown measures until 18 April

Powell, the president of the Fed, said the recovery is far from complete and the Fed will continue to provide support.

Zinc imports declined by 13,000 million tonnes in January-February 2021 compared to the same period last year.

Conclusion:

There has been the downfall of prices in Market since last few days. Especially crude oil and zinc had lost their pice more.