Technically Crude Oil market is under long liquidation as market has witnessed drop in open interest by 9.5% to settled at 1391 while prices down 12 rupees.
Now MCX Crude Oil is getting support at 2950 and below same could see a test of 2896 levels, and resistance is now likely to be seen at 3065, a move above could see prices testing 3126.
Crude Oil yesterday settled down by 0.4% at 3003 due to uncertainty about sustained increase in energy demand in the wake of reports showing sharp spikes in new coronavirus.
OPEC oil output hit the lowest in two decades in June as Saudi Arabia and other Gulf Arab members made larger cuts, pushing group compliance in a supply reduction pact above 100% despite incomplete adherence by Iraq and Nigeria.
The 13-member Organization of the Petroleum Exporting Countries pumped 22.62 million barrels per day (bpd) on average in June, the survey found, down 1.92 million bpd from May's revised figure.
OPEC and Russia will likely ease record oil production cuts from August as global oil demand recovers and prices have bounced back from their lows, four OPEC+ sources told.
OPEC and its allies including Russia, known as OPEC+, have agreed to cut production by a record 9.7 million barrels per day, or 10 percent of global demand, from May to support oil prices as demand plunged because of the coronavirus pandemic.
U.S. crude oil and gaosline stocks fell while distillate inventories rose in the most recent week, data from industry group the American Petroleum Institute showed. Crude inventories fell by 8.2 million barrels in the week to June 26 to 537 million barrels.
--Crude Oil trading range for the day is 2896-3126.
--Crude Oil remained under pressure due to uncertainty about sustained increase in energy demand amid reports showing sharp spikes in new coronavirus.
--OPEC oil output hit the lowest in two decades in June as Saudi Arabia and other Gulf Arab members made larger cuts.
--U.S. crude stocks drop sharply, gasoline stocks fall in latest week -API.
Courtesy: Kedia Commodities