Crudeoil on MCX settled up 0.44% at 3192 continued to rise in yesterday session extending strong gains from the previous session as support seen after a drawdown in U.S. crude inventory eased concerns about a global supply glut. While crude oil prices finished with a modest loss giving up it's morning gains as rising output from the US remained a threat to efforts by other major producers to rebalance the market. Still, prices continued to find some support following data Wednesday showing the drop in U.S. crude supply in 10 weeks, as well as weaker dollar in the wake of the Fed’s less-hawkish-than-expected rate announcement.
Crude oil prices also briefly traded higher in the last hour before the settlement, buoyed comments from Khalid al-Falih, Saudi Arabia’s energy minister, who said output cuts led by the OPEC may be extended if necessary, according to Bloomberg News. The market also saw volatility tied to the day’s expiration of April crude oil options.
Now traders are eyeing for Friday, oilfield services provider Baker Hughes on Friday will detail the latest weekly rig count for the week ended March 10. Last week, the number of active U.S. rigs drilling for oil rose by 8, the eighth weekly increase in a row. That brought the total count to 617, the most since October 2015.
Also sentiment also improved following a sharp sell-off on Tuesday as the Paris-based IEA said the global crude oil market is headed for a deficit of supply against demand in the first half of the year if a coordinated pact to curb output to the market holds until the end of June. Technically market is getting support at 3161 and below same could see a test of 3130 level, And resistance is now likely to be seen at 3234, a move above could see prices testing 3276.