Crude oil on MCX settled up 0.22% at 3623 ended slightly higher amid a tug of war on oil supplies between OPEC and the US. Since last few weeks Crude oil prices have stalled anew as traders weigh conflicting supply trends. On one hand, OPEC is pushing for broader implementation of a supply cut deal agreed by the cartel and several large external producers, notably including Russia.
On the other, swing output continues to swell, with Baker Hughes data showing the number of active US rigs rose to the highest since October 2015 last week. Significant progress on this narrative seems unlikely over the coming day. Still, market participants are hopeful that OPEC may cut production even further, after the UAE and Iraq, the two biggest laggards, have pledged to catch up with their targets.
In November last year, The OPEC and other producers, including Russia agreed to cut output by about 1.8mbpd in an effort to combat the oversupply issue that has pressured prices over the last two years. In economic news, the Commerce Department released a report showing a rebound in durable goods orders in the month of January.
Meanwhile Investors raised their bets on rising Brent crude oil prices to a new high last week, breaking the 500,000-lot mark for the first time on record, data from the ICE showed. Money managers also raised their bullish U.S. crude futures and options positions in the week to Feb. 21 to the highest on record, the US CFTC said on Friday. Technically market is getting support at 3612 and below same could see a test of 3600 level, and resistance is now likely to be seen at 3644, a move above could see prices testing 3664.