Crudeoil on MCX settled down -0.81% at 3203 continued to fall in yesterday session after the government raised its shale oil output estimates for April. US shale oil production from seven main regions is forecast to rise by 109,000 barrels a day to 4.962 million barrels a day in April from March, according to a monthly report from the EIA.
Meanwhile the EIA has recently reported domestic oil stockpiles have surged to their highest ever. Meanwhile, the US oil rig count rose for an eighth straight week to the highest level since 2015, according to Baker Hughes.
Also Robust U.S. production and a stronger dollar have driven oil sharply lower over the past week offsetting output quotas from OPEC and Russia. Traders are looking ahead, China reports fixed asset investment for January with an 8.2% gain expected year-on-year, industrial production seen up 6.2% and retail sales with an expected 10.5% increase. As well, later on Tuesday, the API is slated to give its estimates of U.S. crude and refined product stockpiles.
The figures are followed on Wednesday by official data from the EIA expected to show a 3.2mbl gain in crude stocks, while gasoline supplies fell by 1.98mbls and distillates declined 1.5mbls at the end of last week. Overnight, U.S. shale oil output was forecast to rise by 1.9mbpd in April to hit 4.96mbpd, the US EIA drilling productivity report released on Monday showed. The figures set the stage for a report by the OPEC monthly assessment of oil markets.
On Wednesday, the IEA will release its monthly report on global oil supply and demand. Technically now Crudeoil is getting support at 3185 and below same could see a test of 3167 level, And resistance is now likely to be seen at 3222, a move above could see prices testing 3241.