Crude Oil on MCX settled down -0.14% at 2956 as market players shifted their focus to weekly data from the U.S. on stockpiles of crude and refined products. Global oil supply of 94 million barrels per day needs to fall by about a tenth if it is to match consumption, Venezuela's Oil Minister Eulogio Del Pino said. Oil futures spiked on Monday after Venezuelan President Nicolas Maduro said that OPEC and non-OPEC countries were "close" to reaching a deal to stabilize oil markets.
But prices ended well off the highs amid skepticism over whether such a deal can be agreed upon. OPEC members, led by Saudi Arabia and other big Middle East crude exporters, will meet non-OPEC producers led by Russia at informal talks in Algeria between September 26 and 28. Japan's customs-cleared crude oil imports rose 0.5 percent in August from the same month a year earlier, the Ministry of Finance said. Japan, the world's fourth-biggest crude buyer, imported 3.38 million barrels per day of crude oil last month, the preliminary data showed. Overall, however, oil markets remain oversupplied as exporters around the world pump near record amounts, while demand stutters.
Major oil producers from the Organization of the Petroleum Exporting Countries (OPEC) and also Russia plan to meet in Algeria next week to discuss measures to rein in the oversupply, but analysts said they did not expect significant cuts to production. Technically market is under fresh selling as market has witnessed gain in open interest by 24% to settled at 25434 while prices down -4 rupee, now Crude Oil is getting support at 2911 and below same could see a test of 2867 level, and resistance is now likely to be seen at 2995, a move above could see prices testing 3035.
--Crude Oil trading range for the day is 2867-3035.
--Crude Oil dropped as market players shifted their focus to weekly data from the U.S. on stockpiles of crude and refined products.
--Global oil supply of 94 million barrels per day needs to fall by about a tenth if it is to match consumption, Venezuela's Oil Minister Eulogio Del Pino said.
--OPEC members could decide to hold an extraordinary meeting to discuss oil prices immediately after an informal gathering in Algiers next week.
Courtesy: Kedia Commodities