Crudeoil on MCX settled down -0.17% at 3550 wiping out some of the gains of the previous session amid worries lower growth targets in China could cut oil demand and ongoing concern over Russia’s compliance with a global deal to cut oil output. But worries over escalating violence in the Middle East put a floor under prices. Also support seen as Libya’s crude output dropped after clashes forced two of the country’s biggest oil ports to shut down, threatening the OPEC member’s efforts to revive the production of its most important commodity.
The North African country’s production fell to 650,000 barrels a day from about 700,000 barrels a few days ago, according to a person with knowledge of the matter, who asked not to be identified because the person isn’t authorized to speak to media. Meanwhile Hedge funds trimmed their net-long positions on WTI, by 6.5 percent in the week ended Feb. 28, U.S. CFTC data show. In the week ahead, market participants will eye fresh weekly information on U.S. stockpiles of crude and refined products on Tuesday and Wednesday to gauge the strength of demand in the world’s largest oil consumer.
Meanwhile, traders will pay close attention to comments from global oil producers attending the annual CERA Week Conference in Houston, Texas for further evidence that they are complying with their agreement to cut output. Also 'Big Oil' figures attending the week-long event include OPEC Secretary General Mohammad Mohammed Barkindo, the oil ministers from Saudi Arabia, Russia and Iraq, as well as executives from major oil companies. Technically market is getting support at 3528 and below same could see a test of 3507 level, And resistance is now likely to be seen at 3572, a move above could see prices testing 3595.