On MCX settled up 0.57% at 3351 continued to rise as a strong US jobs market signaled imminent demand for energy products. While today prices crude oil prices will see gap up opening as support seen after the United States launched dozens of cruise missiles at an airbase in Syria. Crude settled higher for a third straight day, despite renewed concerns that a ramp up in U.S. crude production could dampened OPEC’s efforts to reduce supply, after U.S. crude inventories swelled to a record high on Wednesday.
A report from the EIA on Wednesday, showed an unexpected rise in U.S. crude inventories, which confounded expectations of a drop in inventories, as the U.S. approaches the ‘summer driving season’. Investors, remained hopeful that OPEC would extend its current deal to cut production beyond June in an effort to curb the current glut in supply. In November last year, OPEC and other producers, including Russia agreed to cut output by about 1.8mbpd.
Non-OPEC oil producers that joined the global deal to reduce output delivered only 64% of promised cuts in February, an industry source said March 20, which was far below the roughly 90% compliance with the deal from OPEC members. Now Crude oil trader eyeing on today's Non-farm Payrolls data. Expectations are set at 180k, and any deviation from this value may send commodities markets reeling.
Last month’s NFP release saw employment figures beating expectations, which directly sent crude oil prices to form new weekly and monthly lows. Also participants turn attention to Baker Hughes rig count, due to be released on Friday. Technically market is getting support at 3319 and below same could see a test of 3288 level, And resistance is now likely to be seen at 3370, a move above could see prices testing 3390.