Technically Crude Oil market is under fresh buying as market has witnessed gain in open interest by 5.99% to settled at 2176 while prices up 54 rupees.
Now MCX Crude Oil is getting support at 2848 and below same could see a test of 2750 levels, and resistance is now likely to be seen at 3004, a move above could see prices testing 3062.
Crude Oil yesterday settled up by 1.87% at 2947 on optimism about recovering fuel demand worldwide, despite surges in coronavirus infections in some U.S. states and indications of a revival in U.S. crude production.
Worries about a second wave of coronavirus cases in U.S, where lockdowns had eased, and a rapid spread of infections in South America and South Asia are expected to keep a lid on fuel demand.
U.S. crude oil refining capacity grew by nearly 1 percent in 2019, or 173,650 barrels per day (bpd) to nearly 19 million bpd, a new record, according to a report released on Wednesday by the U.S. Energy Information Administration (EIA).
U.S. commercial crude oil stocks hit a record high for a third straight week, while gasoline stockpiles fell as demand jumped, the Energy Information Administration said.
Crude inventories rose by 1.4 million barrels in the week to June 19 to 540.7 million barrels, the EIA said.Crude inventories also hit another record high on the Gulf Coast, where the bulk of the nation's refining capacity is located.
Crude stocks at the Cushing, Oklahoma, delivery hub for futures fell by 991,000 barrels in the last week, EIA said. U.S. gasoline stocks fell by 1.7 million barrels, compared with expectations for a 1.3 million-barrel drop.
--Crude Oil trading range for the day is 2750-3062.
--Crude Oil gained on optimism about recovering fuel demand worldwide.
--U.S. crude stocks rise to record high for third straight week.
--New wave of coronavirus cases to hurt demand recovery.
Courtesy: Kedia Commodities