Gold Silver Reports — Crude Oil Expected Trading Zone Levels 3530-3630 — Technically market is getting support at 3530 and below same could see a test of 3502 level, And resistance is now likely to be seen at 3630, a move above could see prices testing 3710.
Crude oil on MCX settled down -1.83% at 3601 fell tracking weakness from Nymex Crude which fell from yearly highs in yesterday’s session ahead of U.S. inventories data dropped by -1.4%, to settle at $53.59 a barrel snapping a three-session string of gains as concerns about growing output by producers outside of a pact to curtail global production weighed on crude futures.
Crude inventories fell by 884,000 barrels in the week to Feb. 17 to 512.7 million, compared with market expectations for an increase of 3.5mbls, data from industry group the API showed on Wednesday. In the US, crude stocks at the Cushing, Oklahoma, delivery hub were down by 1.7mbls, while U.S. crude imports fell last week by 1.5mbpd to 7.398mbpd, according to the API.
The data added to optimism earlier in the week when the OPEC said a deal with other producers including Russia to curb output was showing a high level of compliance. The crude market has been anxious about rising production, namely from U.S. shale-oil producers and Russia, which has a history of not complying with production limits.
Mohammed al-Sada, the oil minister of OPEC member Qatar, may have affirmed those worries. Speaking at the International Petroleum Week in London, he said not all the pieces were falling into place under a landmark agreement for planned cuts of 1.2mbd in output from 13 members of the OPEC and 11 oil producers outside of the group. Compliance by non-OPEC members, which include Russia and Mexico, are at about 50% of what has been promised, he said. — Neal Bhai Reports