Crudeoil on MCX settled up 1.94% at 3424 climbed higher reaching it best closing level in over a month amid concerns about geopolitical tensions, the price of crude oil showed a notable upward move during trading on Monday. Support also seen after the update that Libya's Sharara oilfield was shut after a group blocked a pipeline linking it to an oil terminal, a Libyan oil source said.
The field had only just returned to production, after a week-long stoppage ending in early April. The outage added to a rally that started late last week after the United States fired missiles at a Syrian government air base. While Syria produces only small volumes of oil, the Middle East is home to more than a quarter of the world's oil output. Later in the day traders will be eyeing for the API will report estimates of inventories for crude and refined products at the end of last week, followed by official data from the US EIA on Wednesday. The two sets of figures diverged sharply last week with API showing a crude draw and EIA a build.
Market expects a 316,000 barrels build in crude supplies, and a drop in gasoline stocks of 1.761mbls and a decline in distillate supplies of 896,000 barrels. 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, investors will keep an eye out for monthly reports from the OPEC and the IEA to gauge global supply and demand levels. Technically market is getting support at 3382 and below same could see a test of 3341 level, And resistance is now likely to be seen at 3447, a move above could see prices testing 3471.