Technically Crude Oil market is getting support at 4468 and below same could see a test of 4429 levels and resistance is now likely to be seen at 4532, a move above could see prices testing 4557.
Crude Oil on MCX settled up 0.63% at 4506 climbed after a U.S. government report revealed a bigger-than-expected decline in domestic crude supplies, which was the largest one-week drop since the end of March.
Crude oil price gains for oil, however, were limited as the EIA report Wednesday also showed a sizable weekly climb in total U.S. crude production and recent data offered evidence of a pickup in output from the OPEC. The US EIA reported Wednesday that crude supplies fell by 4.1mbls for the week ended June 8.
That was the biggest one-week drop since the 4.6mbl decline reported for the week ending March 30. The IEA also cautioned that oil production from regions outside of the remit of OPEC, notably in the U.S., was set to increase. However, the organization said it expected projections for non-OPEC output to slow slightly next year to 1.7mbpd, compared with expectations for 2mbpd this year.
The report comes after a separate monthly report from OPEC Tuesday that showed member increased by 35,000 barrels a day in May, month-on-month, to average 31.87mbpd. A gathering of OPEC members is set for June 22.
The meeting could determine the outlook for production curbs. Apart from the inventory data, oil traders continued to weigh potential outcomes for a meeting of major oil producers later this month.
The OPEC is due to meet at its headquarters in Vienna, together with non-OPEC member Russia, on June 22 to discuss production policy. OPEC and non-OPEC producers have been curbing output by about 1.8mbpd to prop up oil prices and reduce high global oil stocks.
--Crude oil trading range for the day is 4429-4557.
--Crude oil prices settled higher as data showed a massive draw in U.S. crude supplies despite an ongoing expansion in output.
--Inventories of U.S. crude fell by 4.143 million barrels for the week ended June 8, well above expectations for a draw of 1.440 million barrels.
--The API reported that crude oil inventories jumped 830,000 barrels last week to 433.7 million, as U.S. crude production surged 28% in the last two years.
Courtesy: Kedia Commodities