Gold Silver Reports – Technically now Crude Oil is getting support key at 3702 and below same could see a test of 3642 levels and resistance key is now likely to be seen at 3814, a move above could see prices testing 3860.
Crude Oil on MCX settled down 1.31% at 3757 amid uncertainty over a possible extension of output cuts by major crude producers and expectations of higher supply as the Keystone pipeline restarts.
Uncertainty over Russia’s determination to join with other major oil producers in extending crude oil production curbs beyond next March has weighed on oil markets. TransCanada Corp said it will restart its Keystone crude oil pipeline at reduced pressure on Tuesday after getting approval from U.S. regulators.
Calgary-based TransCanada shut down the 590,000 barrel-per-day pipeline, one of Canada’s main crude export routes to the United States, on Nov. 16 after 5,000 barrels of oil leaked in South Dakota. Keystone carries crude from Alberta’s oil sands to U.S. refineries.
Oil prices have surged in recent months due to output cuts by the Organization of the Petroleum Exporting Countries, Russia and other producers. However, higher prices have encouraged greater output among U.S. producers.
OPEC and its allies cut production by 1.8 million bpd in January and have agreed to hold down output until March. OPEC meets on Thursday to discuss policy and most analysts expect a deal to extend the cuts. On Friday, Russia said it was ready to support extending an output cut deal.
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Still, Russia has not given a timeline, and on Monday there were signs Russia may find it hard to comply. Oil output from Russia’s Sakhalin-1 project is set to rise by about a quarter to 250,000-260,000 barrels per day (bpd) from January, sources with knowledge of the plan said. – Neal Bhai Reports
