On MCX settled up 0.17% at 4637 supported by tightening sanctions against Iran announced this week but upside seen limited by a surge in U.S. supply and concerns of an economic slowdown. On the supply side, U.S. crude oil production has risen by more than 2 million barrels per day (bpd) since early 2018 to a record of 12.2 million bpd currently, making the United States the world's biggest oil producer ahead of Russia and Saudi Arabia.
In part because of soaring domestic production, U.S. commercial crude oil inventories last week hit an October 2017 high of 460.63 million barrels, the Energy Information Administration said. U.S. attempts to drive Iranian oil exports down to zero come against the backdrop of a global market that is sufficiently well supplied to avoid price disruptions, senior U.S. officials said.
U.S. President Donald Trump has expressed confidence that Saudi Arabia and the United Arab Emirates would compensate for the shortfall in the oil market. Crude oil production C-OUT-T-EIA is also soaring in the United States, reaching a record 12.2 million bpd this year.
The United States re-imposed sanctions against Iran's oil exports last November, but initially allowed the eight biggest buyers of Iranian oil limited imports for another half-year. Saudi Arabia's energy minister Khalid al-Falih told that China has "not yet" asked for more crude oil after the U.S. decided to end sanction waivers on Iranian oil imports.
Technically market is under fresh buying as market has witnessed gain in open interest by 6.15% to settled at 18892 while prices up 8 rupees, now Crudeoil is getting support at 4613 and below same could see a test of 4588 level, And resistance is now likely to be seen at 4666, a move above could see prices testing 4694.
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