Gold Silver Reports – CrudeOil MCX Sell on Rise, Downside Target 3960—3890 — Technically Crude Oil market is under fresh selling as market has witnessed gain in open interest by 77.33% to settled at 15690.
CrudeOil MCX Sell on Rise
CrudeOil MCX is getting support at 3960 and below same could see a test of 3890 levels and resistance is now likely to be seen at 4088, a move above could see prices testing 4140.
Crude Oil on MCX settled down 1.2% at 4042 as a bounce-back in U.S. production outweighed ongoing declines in crude inventories. The Organization of the Petroleum Exporting Countries has increased the oil demand growth outlook for 2018 by 1.53 mln barrels per day, up by around 20,000 bpd from the projection it made in December.
For 2018, the forecast for global economic growth has been kept unchanged at 3.7%, OPEC said in a monthly report. Production by OPEC rose by 42,000 bpd to 32.42 mln bpd in November as Nigeria, Angola, and Algeria pumped more oil.
The lower prices were prompted by a recovery in U.S. oil production after a recent drop, as well as by an expected fall in demand. U.S. crude oil production stood at 9.75 million barrels per day (bpd) on Jan. 12, data from the Energy Information Administration (EIA) showed. Output had fallen to 9.49 million barrels at the start of the year, due largely to a cold snap that shut down some production.
Read More: U.S Crude Oil Under Short Term Challenges
The main price driver has been a production cut by a group of major oil producers around the Organization of the Petroleum Exporting Countries (OPEC) and Russia, who started to withhold output in January last year.
The supply cuts by OPEC and its allies, which are scheduled to last throughout 2018, were aimed at tightening the market to prop up prices. In the United States, crude inventories fell 6.9 million barrels in the week to Jan. 12, to 412.65 million barrels. – Neal Bhai Reports
