Crude Oil on MCX settled down -2.14% at 2885 as rising exports in Iran, Libya and Nigeria sparked fresh supply glut concerns. Iran's August crude oil exports jumped 15 percent from July to more than 2 million barrels per day (bpd), according to a source, closing in on Tehran's pre-sanctions shipment levels of five years ago. In addition, Libya said it is resuming oil exports from some of its main ports and has lifted related "force majeure" contractual clauses.
The No. 3 OPEC producer has more than doubled its crude exports, excluding the ultra light oil condensate, since December. Economic sanctions targeting Iran's disputed nuclear program were lifted in January, and it has been battling since then to regain market share lost to other Middle East producers over the previous four years. The strong demand for Iran's crude in Asia and Europe has enabled it to raise its oil output to just over 3.8 million bpd as of this month, still shy of the 4 million bpd level Tehran says is a precondition for discussing output limits with Saudi Arabia and Russia.
According to the U.S. Energy Information Administration, distillate inventories including diesel, increased by 4.619 million barrels last week, much higher than expectations for a rise of 1.543 million barrels. The jump was the biggest weekly build since January and put distillate stocks at six-year seasonal highs. The report also showed that gasoline inventories rose by 567,000 barrels, disappointing expectations for a 343,000-barrel drop. Technically market is under fresh selling as market has witnessed gain in open interest by 0.5% to settled at 19096, now Crude Oil is getting support at 2863 and below same could see a test of 2842 level, and resistance is now likely to be seen at 2915, a move above could see prices testing 2946.
--Crude Oil trading range for the day is 2842-2946.
--Crude Oil prices ended with losses as rising exports in Iran, Libya and Nigeria sparked fresh supply glut concerns.
--Iran's August crude oil exports jumped 15 percent from July to more than 2 million barrels per day.
In addition, Libya said it is resuming oil exports from some of its main ports and has lifted related "force majeure" contractual clauses.
Courtesy: Kedia Commodities