Crudeoil on MCX settled down -0.16% at 4457 despite of declining U.S. inventories, supply cuts by major producers and U.S. sanctions on Venezuela and Iran all lent support. The Energy Information Administration reported the first drawdown in crude stocks in four weeks. Crude stockpiles fell by 1.4 million barrels last week, after a build of around 17 million barrels in three previous weeks.
The EIA also reported that gasoline inventories declined by 1.17 million barrels, while distillate stockpiles, dropped by a smaller-than-forecast 0.36 million barrels. Gasoline stocks fell by 1.2 million barrels, and distillate stocks, which include diesel and heating oil, fell by 362,000 barrels, the EIA data showed.
An alliance of countries that includes Russia is cutting oil production to end a global glut. One of the big winners: the nation’s own crude exporters. The supply cuts from the so-called OPEC+ nations, coupled with U.S. sanctions on Venezuela and Iran, have reduced the amount of medium- and heavy-grade sour crude on the market.
While Russia is part of the output cuts effort, exports of its medium-sour Urals crude -- the country’s biggest export grade -- are set to soar this month to an almost two-year high. Global supply has been tightened further by U.S. sanctions on OPEC members Venezuela and Iran. Surging U.S. production has filled some of the gap in supplies, although not all of the lost production can be immediately replaced by U.S. shale oil due to refinery configurations.
Technically market is under fresh selling as market has witnessed gain in open interest by 148.83% to settled at 12643, now Crudeoil is getting support at 4434 and below same could see a test of 4410 level, And resistance is now likely to be seen at 4478, a move above could see prices testing 4498.
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