Crude Oil on MCX settled down -0.36% at 4690 as attention shifted to the risk of oversupply, with market participants shrugging off escalating tensions between the United States and Iran. Earlier in session, the market had risen after President Donald Trump warned of dire consequences for Iran if it threatened the United States.
MCX Crude oil is getting support at 4640 and below same could see a test of 4580 levels and resistance is now likely to be seen at 4805, a move above could see prices testing 4851.
Saudi Arabia and large producers are ramping up output to offset losses that are likely to come as a November deadline approaches for other countries to comply with U.S. sanctions on crude sales from Iran. Meanwhile, U.S. crude inventories at the delivery hub at Cushing, Oklahoma gained in the four days to Friday, according to information supplier Genscape.
On a weekly basis, stockpiles at the hub were expected to fall for the 10th consecutive week. Yet the prospect of a big drop in Iranian crude exports has waned in recent weeks as the U.S. has hinted waivers could be in the offing to some buyers of Iranian crude.
