Crudeoil on MCX settled down -4.5% at 3271 sank to the lowest since November. It was the worst 2-day drop in more than a year. Crude oil bulls have seemingly capitulated, losing a tug of war near $53 that lasted for months. Crude oil prices continued to collapse as U.S. inventories added to record highs, with facilities brimming at storage facilities across the nation. The plunge came even as representatives from the OPEC this week touted high compliance among the output-cut agreement participants since the start of the year.
OPEC Secretary-General said that the commitment among output cut pact countries “remains high.” But in U.S., which isn’t part of the pact, the latest data revealed that crude production last week reached a more than one-year high. This week the U.S. EIA reported an 8.2mbl climb in domestic crude supplies for last week, lifting total commercial inventories to a record weekly level of 528.4mbls. The weekly climb was the ninth in a row.
Expectations for a large rise in the official data rose after data from the API showed that domestic crude inventories rose by a whopping 11.6mbls in the latest week. Also Data showed crude stocks in the United States, the world's top oil consumer, swelled by 8.2mbls last week to a record 528.4mbls.
Now trader are eyeing ahead, investors are awaiting an update after the number of active U.S. rigs drilling for oil rose by 7 in figures reported last week, the seventh weekly increase in a row. Technically market is getting support at 3209 and below same could see a test of 3146 level, And resistance is now likely to be seen at 3378, a move above could see prices testing 3484.