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Technically Crude Oil market is under fresh buying as market has witnessed gain in open interest by 43.46% to settled at 11026.
Now MCX Crude Oil is getting support at 4673 and below same could see a test of 4583 level, And resistance is now likely to be seen at 4813, a move above could see prices testing 4863.
Crude Oil on MCX settled up 3.16% at 4763 as weekly data showed that oil supplies in the U.S. registered a much larger-than-expected draw, although gasoline stockpiles unexpectedly increased and distillate inventories rose more than expected.
The U.S. Energy Information Administration said in its weekly report that crude oil inventories fell by 5.836 million barrels in the week ended August 17. Supplies at Cushing, Oklahoma, the key delivery point for Nymex crude, increased by 0.772 million barrels last week, the EIA said.
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Total U.S. crude oil inventories stood at 408.4 million barrels as of last week. The American Petroleum Institute reported U.S. crude stocks fell last week by 5.2 million barrels, more than three times the drop expected.
Oil also found support from a weak dollar, which has slipped this week in response to U.S. President Donald Trump’s comment that he was “not thrilled” by the Federal Reserve’s interest rate increases.
The prospect of a drop in oil exports from Iran, the third-largest producer in the Organization of the Petroleum Exporting Countries, in response to new U.S. sanctions is also supporting the market.
European oil companies have started to cut back on Iranian purchases, although Chinese buyers are shifting their cargoes to Iranian-owned vessels to keep supplies flowing. OPEC has started to boost supplies following a deal with Russia and other allies in June, although producers have been cautious so far. Saudi Arabia told OPEC it cut supply in July, rather than increasing output as expected.
Trading Ideas:
–Crude oil trading range for the day is 4583-4863.
–Crude oil gained as weekly data showed that oil supplies in the U.S. registered a much larger-than-expected draw.
–The U.S. Energy Information Administration said in its weekly report that crude oil inventories fell by 5.836 million barrels in the week.
–OPEC and other oil exporting producers are expected to agree on a mechanism to monitor their crude production before the end of the year, Kuwaiti Oil Minister said.
Courtesy: Kedia Commodities
Source: Commodityonline.com
