Crude oil yesterday settled down by -2.02% at 7213 amid rising coronavirus cases in China and widening restrictions across the country. Despite losses, oil prices ended the week with gains, supported by supply tightness, robust U.S. exports, and signs of a rebounding U.S. economy. Data showed that U.S. crude oil and petroleum exports increased to a record last week, signaling an uptick in demand. China widened its COVID-19 curbs as the country reported a third straight day of more than 1,000 cases. OPEC's view that world oil demand will keep rising for longer than many other forecasters predict is not expected to change much in its forthcoming major report, despite the growing role of renewables and electric cars. Another decade or more of oil demand growth would be a boost for producers and OPEC, whose 13 members depend on oil income, and would highlight the need for continued investment in new oil supplies.
Consumers and governments urging efforts to curb oil use to combat climate change would be less happy. OPEC made a shift in 2020 as the pandemic hit demand by saying it will eventually plateau, after having predicted years of ever-rising demand. The latest update is likely to keep OPEC among the more optimistic forecasters of oil demand.
Technically market is under long liquidation as the market has witnessed a drop in open interest by -38.36% to settle at 4178 while prices are down -149 rupees, now Crude oil is getting support at 7158 and below same could see a test of 7103 levels, and resistance is now likely to be seen at 7295, a move above could see prices testing 7377.
# Crude oil trading range for the day is 7103-7377.
# Crude oil prices fell amid rising coronavirus cases in China and widening restrictions across the country.
# Despite losses, prices ended the week with gains, supported by supply tightness, robust U.S. exports, and signs of a rebounding U.S. economy.
# OPEC expected to stick to the view of long-term oil demand rise.
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