Technically Crude Oil market is under fresh selling as market has witnessed gain in open interest by 4.05% to settle at 15379.
Now MCX Crude Oil is getting support at 3638 and below same could see a test of 3560 level, And resistance is now likely to be seen at 3772, a move above could see prices testing 3828.
Crude oil prices recovered some of its losses lifted by reports that Saudi Arabia is likely to slash shipments to U.S. refiners. According to reports, Saudi Aramco, the state-controlled oil giant of Saudi Arabia, has warned U.S. refiners to prepare for a sharp reduction in cargoes in the coming month.
Meanwhile, a report from the IEA said that total global oil supply in November fell by 360,000 barrels a day on month, as a result of outages in the North Sea and Canada, as well as a decline in Russian output. And, the agency kept its oil demand growth forecasts for this year and next unchanged, at 1.3 million barrels a day and 1.4 million barrels a day, respectively.
OPEC said demand for its crude in 2019 would fall to 31.44 million barrels per day (bpd), 100,000 bpd less than predicted last month and 1.53 million bpd less than it currently produces.
This adds to the concerns of several market watchers that the decision led by the group to cut production might not be enough to override a glut or push prices higher. Oil market participants are concerned about the likelihood of weaker macroeconomic growth, which could rein in any expansion in oil demand.
OPEC said it replaced a drop in Iranian exports as U.S. sanctions resumed and lowered the 2019 forecast of demand for its crude, underlining its challenge to prevent a glut building even after last week's decision to trim output.
--Crude Oil trading range for the day is 3560-3828.
--Crude oil prices recovered some of its losses lifted by reports that Saudi Arabia is likely to slash shipments to U.S. refiners.
--U.S. crude oil inventories fell less than expected last week, the Energy Information Administration said in its weekly report.
--EIA report lowers 2018 US crude output forecast to 10.88M barrels/day and leaves 2019 estimate unchanged at 12.06M barrels/day
Courtesy: Kedia Commodities