MCX Crude oil is getting support Key at 2800 and below same could see a test of 2770 level, and Resistance Key is now likely to be seen at 2910, a move above could see prices testing 2944.
Crude oil MCX settled up 2.11% at 2860 as investors looked ahead to weekly data from the U.S. on stockpiles of crude and refined products. The report by the American Petroleum Institute showed that U.S. crude inventories rose by 851,000 barrels in the week to June 23 to 509.5 million, compared with analysts’ expectations for a decrease of 2.6 million barrels.
Gasoline stocks rose by 1.4 million barrels, despite the ongoing peak demand U.S. summer driving season. The price falls come despite an ongoing effort by the Organization of the Petroleum Exporting Countries (OPEC) to cut production by 1.8 million barrels per day (bpd) between January 2017 and March 2018.
OPEC will not rush into making a further cut in oil output or end some countries’ exemptions to output limits, OPEC delegates said, although a meeting in Russia next month is likely to consider further steps to support the market.
OPEC and allied non-OPEC producers agreed on May 25 to extend an existing supply cut into 2018, but oil has fallen sharply then on rising production from the United States and from Nigeria and Libya, two OPEC members exempt from cutting output. Oil ministers from five countries monitoring the deal plus Saudi Arabia as OPEC president are scheduled to meet in Russia on July 24. — Neal Bhai Reports