Technically MCX Crude Oil is getting support at 3931 and below same could see a test of 3854 levels, and resistance is now likely to be seen at 4135, a move above could see prices testing 4262.
Crude Oil on MCX settled down 3.47% at 4007 after reports that Trump discussed easing Iran sanctions in order to restart talks.
U.S. crude oil stockpiles fell last week to the lowest in nearly a year, with Cushing inventories falling for the tenth straight week, as refineries raised output and imports fell, the Energy Information Administration said.
Crude inventories fell for a fourth straight week, decreasing 6.9 million barrels in the week to Sept. 6, more than double expectations for a 2.7 million-barrel drawdown. OPEC cut its forecast for growth in world oil demand in 2020 due to an economic slowdown, an outlook the producer group said highlighted the need for ongoing efforts to prevent a new glut of crude.
In a monthly report, the Organization of the Petroleum Exporting Countries cut its forecast for global oil demand growth next year by 60,000 barrels per day (bpd) to 1.08 million bpd and indicated the market would be in surplus. The weaker outlook amid a U.S.-China trade dispute and Brexit could press the case for the Organization of the Petroleum Exporting Countries and allies including Russia to maintain or adjust their policy of cutting output.
Iraq said ministers would discuss whether there was a need for deeper cuts. OPEC, in the report, lowered its forecast for world economic growth in 2020 to 3.1% from 3.2% and said next year's increase in oil demand would be outpaced by "strong growth" in supply from rival producers such as the United States.
--Crude Oil trading range for the day is 3854-4262.
--Crude Oil dropped after reports that Trump discussed easing Iran sanctions in order to restart talks.
--U.S. crude oil stockpiles fell last week to the lowest in nearly a year, with Cushing inventories falling for the tenth straight week.
--OPEC cut its forecast for growth in world oil demand in 2020 due to an economic slowdown.
Courtesy: Kedia Commodities