Crude oil yesterday decreased -2.20 percent to end at 6618 by 22:30 IST as investors debated whether the Federal Reserve (Fed) of the United States will raise interest rates in May. Which may dash expectations for an economic rebound.
However, it was anticipated that Chinese Economic data would be encouraging for demand growth. In addition. The International Energy Agency (IEA) cautioned that the production reductions planned by Organization of the Petroleum Exporting Countries (opec+) ran the danger of escalating the anticipated oil supply shortfall in the 2nd half of 2023.
Which might harm consumers & the recovery of the world’s economy. Oil exports from Iraq’s northern region to the Turkish port of Ceyhan are still halted nearly 3 weeks. After an arbitration court determined Ankara owed Baghdad compensation for unauthorised exports, further restricting supply.
According to Pavel Sorokin, the deputy energy minister of Russia. The country’s crude oil output is expected to be stable through 2025. And Moscow is preparing reserves to increase the security of its supplies. In order to support the price of oil, which is a major source of income for its budget.
Russia has decided to reduce its output of crude oil by 500K bpd until the end of the year. In spite of Western sanctions, Russian oil output has shown resilience, confounding predictions of a sharp fall.
Technically, the market is in long liquidation as evidenced by the market’s drop in open interest of -28.3 percent to close at 3939. While prices are lower by -135 rupees.
Currently, Crude Oil is receiving support at 6575 and a move below that level could result in a test of 6516 levels. While a move above 6732 could result in a test of 6830 levels.