Crude oil yesterday settled down by -0.39% at 4604 as a collapse in bond prices led to gains in the U.S. dollar and expectations grew that with oil prices back above pre-pandemic levels, more supply is likely to come back to the market.
oil output dropped 58,000 barrels per day to 11.063 million bpd in December, the U.S. Energy Information Administration said in a monthly report.
The move came as onshore oil production fell in Texas and North Dakota, the top oil-producing states, outpacing a slight rise in offshore output in the Gulf of Mexico. The agency also revised down crude production in November to 11.121 million bpd, 3,000 bpd less than previously reported. Crude output in the United States, the world's top producer, has dropped precipitously since the coronavirus pandemic put pressure on oil demand.
Total U.S. oil demand in December was down 1.49 million bpd, or 7.4%, from a year earlier. Demand for gasoline was down 1.109 million bpd, or 12.4% from a year earlier. Meanwhile, monthly gross natural gas production in the U.S. Lower 48 states held mostly steady at 102.5 billion cubic feet per day (bcfd) in December, according to the EIA's 914 production report. Actual output increased a very small 32 million cubic feet per day (mmcfd) in December after rising 2,968 million in November.
Technically market is under long liquidation as the market has witnessed a drop in open interest by -3.54% to settled at 3923 while prices down -18 rupees, now Crude oil is getting support at 4568 and below same could see a test of 4533 levels, and resistance is now likely to be seen at 4656, a move above could see prices testing 4709.
# Crude oil trading range for the day is 4533-4709.
# Crude oil prices fell as a collapse in bond prices led to gains in the U.S. dollar and expectations grew that with oil prices back above pre-pandemic levels.
# U.S. crude oil output dropped 58,000 barrels per day to 11.063 million bpd in December, the U.S. Energy Information Administration said
# The move came as onshore oil production fell in Texas and North Dakota, outpacing a slight rise in offshore output in the Gulf of Mexico.
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