SMC’s commodity updates for Oct 17 | commodity outlook for the day | IndiaNotes.com
Crude oil may open on firm path as it can move in range of 3310-3400. Oil prices closed in on the highest level in six months as a conflict in Iraq spilled over into one of the nation’s key crude-producing hubs. Iraqi forces on Sunday launched a campaign to retake control of the area surrounding Kirkuk, an ethnically diverse area controlled by the semiautonomous Iraqi Kurdistan region. Government troops took control of the North Oil Company , a military base and airport. Iraqi Kurdistan produces between 500,000 and 600,000 barrels a day of oil. Turkey , which is allied with the central government in Baghdad, has threatened to shut down a pipeline that carries Kurdish oil to the Turkish port at Ceyhan. Natural gas may move in range of 188-194.
Base metals complex may witness profit booking at higher levels as US industrial production can give further direction to the prices. Copper may trade in range of 458-468. Aluminum can move in the range of 136-139 in MCX. Nickel can move in range of 755-775. Lead can hover in the range of 162-167 . Zinc may move in range of 205-210. London copper paused for breath near three-year highs on T uesday as it faced headwinds from a stronger dollar , but renewed optimism over China’s economic outlook has lent support to prices. China’s producer profits and copper imports have picked up, recent data showed, even as China’s economic growth is expected to ease to 6.8 per cent in the third quarter from 6.9 per cent in the previous quarter due to a cooling property sector and the government’s battle against debt risks. Rio Tinto cut its mined copper production guidance for 2017 to 460,000-480,000 tonnes from 500,000-550,000 tonnes owing to a delayed ramp-up at its Chilean Escondida mine.
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