Technically Crude Oil market is under fresh buying as market has witnessed gain in open interest by 23.76% to settled at 5147 while prices up 116 rupees.
Now MCX Crude Oil is getting support at 5249 and below same could see a test of 5174 levels, and resistance is now likely to be seen at 5371, a move above could see prices testing 5418.
Crude Oil yesterday settled up by 2.23% at 5324 buoyed by data showing a drop in U.S. crude stockpiles last week due to the impact of recent storms.
U.S. crude inventories last week fell by 3.5 million barrels to 413.96 million barrels, the lowest since October 2018, data from the U.S. Energy Information Administration showed.
East Coast refinery utilization rates last week rose to 93%, the highest since May 2019, according to the data. OPEC and its allies struggled again to pump enough oil in August to meet global demand as it recovers from the coronavirus pandemic, potentially adding to upward pressures on oil prices.
Several OPEC+ members such as Nigeria, Angola and Kazakhstan have struggled in recent months to raise output due to years of under-investment or large maintenance work that has been delayed by the COVID-19 pandemic.
U.S. crude oil, gasoline and distillate inventories fell last week, as numerous refineries and offshore drilling facilities remained shut following Hurricane Ida. Crude stocks fell by 6.1 million barrels for the week ended Sept. 17. Gasoline inventories fell by 432,000 barrels and distillate stocks fell by 2.7 million barrels, the data showed.
–Crude Oil trading range for the day is 5174-5418.
–Crude Oil gained buoyed by data showing a drop in U.S. crude stockpiles last week due to the impact of recent storms.
–U.S. crude stocks drop to lowest since Oct 2018 – EIA.
–OPEC+ struggles to pump more oil to meet rising demand.
Courtesy: Kedia Commodities
Source: Comodity Online