Gold Silver Reports — Technically Crude Oil market is under fresh selling as market has witnessed gain in open interest by 7.28% to settled at 30633 while prices down 72 rupees.
MCX Crude oil is getting support at 2670 and below same could see a test of 2630 level, And resistance is now likely to be seen at 2844, a move above could see prices testing 2920.
Crude oil on MCX settled down -2.56% at 2741 as investors discounted evidence of strong compliance by OPEC and non-OPEC producers with a deal to cut global output. Crude inventories fell 2.5 million barrels in the week to June 16, surpassing expectations for a decrease of 2.1 million barrels, as imports rose marginally by 56,000 barrels per day, the U.S. Energy Information Administration said.
Gasoline stocks fell 578,000 barrels, compared with analyst expectations for a seasonally unusual 443,000-barrel gain, which had been seen as bearish in the market. Stocks of the motor fuel had also risen unexpectedly by 2.1 million barrels in the previous week, despite the start of the summer driving season.
The Organization of Petroleum Exporting Countries is considering deepening agreed cuts in output due to increasing U.S. production, Iranian Oil Minister Bijan Zanganeh said. OPEC and non-OPEC producers have agreed to cut oil output by 1.8 million barrels a day.
They agreed to extend that deal in May for another nine months until March of next year. But the production curbs have done little to reduce global inventories as demand remains anemic and U.S. shale production increases. Last month, OPEC and some non-OPEC producers extended a deal to cut 1.8 million barrels per day in supply until March 2018.
So far, the production-cut agreement has had little impact on global inventory levels due to rising supply from producers that are exempt from the deal, such as Libya and Nigeria and a relentless increase in U.S. shale output.