Crude Oil on MCX settled up 0.12% at 4109 supported by expected supply cuts from OPEC but held back by record U.S. production.
Prices were mainly supported by expectations the Organization of the Petroleum Exporting Countries (OPEC) would start withholding supply soon, fearing a renewed rout such as in 2014 when prices crashed under the weight of oversupply.
MCX Crude Oil is getting support key @4013 and below same could see a test of 3949 levels and resistance key @4192, a move above could see prices testing 4282.
U.S. crude oil production has hit a fresh record of 11.7 million barrels per day, that’s resulted in swelling commercial crude inventories.
While OPEC considers withholding supply, U.S. crude oil production reached another record last week, at 11.7 million barrels per day (bpd), according to U.S. Energy Information Administration (EIA) data.
U.S. output has surged by almost a quarter since the start of the year. The record output meant U.S. crude oil stocks posted the biggest weekly build in nearly two years.
The Saudis have the power to rescue this market. They went from announcing a million barrels in cuts initially to 1.4 million barrels over a matter days. There are the stirrings of a reaction coming and no one wants to be caught on the wrong side.
Crude inventories soared 10.3 million barrels in the week to Nov. 9 to 442.1 million barrels, the highest level since early December 2017.
This surge contributed to oil prices falling by around a quarter since early October, taking many by surprise. – Neal Bhai Reports
