Technically Crude Oil market is under fresh selling as market has witnessed gain in open interest by 3.03% to settled at 1394 while prices down 59 rupees.
Now MCX Crude Oil is getting support at 3781 and below same could see a test of 3727 levels, and resistance is now likely to be seen at 3877, a move above could see prices testing 3919.
Crude Oil yesterday settled down by 1.52% at 3835 after data showed a notable rise in U.S. crude inventories and rising coronavirus cases and lockdown measures in several places raised concerns about the outlook for energy demand.
U.S. oil output from seven major shale formations is expected to decline for the fourth straight month to about 7.52 million barrels per day (bpd) in February, the lowest since June, the U.S. Energy Information Administration said in a monthly forecast.
Saudi Arabia's crude oil exports rose for a fifth consecutive month to a seven-month peak of 6.35 million barrels per day (bpd) in November 2020, official data showed.
In October, the kingdom exported 6.16 million bpd of crude oil. U.S. crude oil stocks surprisingly rose and fuel inventories were also higher in the most recent week, data from industry group the American Petroleum Institute showed.
Crude inventories rose by 2.6 million barrels in the week to Jan. 15 to about 487.1 million barrels, compared with expectations for a fall of 1.2 million barrels. Crude stocks at the Cushing, Oklahoma, delivery hub fell by 4.3 million barrels, API said.
Refinery crude runs rose by 294,000 barrels per day, API data showed. Distillate fuel inventories, which include diesel and heating oil, rose by 816,000 barrels, compared to expectations for a build of 1.2 million barrels.
--Crude Oil trading range for the day is 3727-3919.
--Crude Oil fell after data showed a notable rise in U.S. crude inventories and rising lockdown measures raised concerns about the outlook for energy demand.
--U.S. shale oil output to drop 90,000 bpd to 7.52 mln bpd in Feb
--U.S. crude oil stocks surprisingly rose and fuel inventories were also higher in the most recent week
Courtesy: Kedia Commodities