Crude Oil Climbed Amid Supply Worries

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Crude oil yesterday settled up by 2.2% at 8447 amid supply worries after the EU proposed some of its toughest measures yet against Russia, including a total ban on oil imports. The two oil stock releases carried out so far amount to only 9% of overall stocks, Fatih Birol, head of the International Energy Agency (IEA), said. "We can come back again if there is a problem," he said while speaking remotely during an event in Florence, Italy. Birol said a situation where a short-term scramble for alternative energy sources to Russia's prolonged reliance on volatile fossil fuels had to be avoided.
 
IEA last month listed members' contributions to a 120-million-barrel release of crude and oil products from emergency stockpiles to bring down global oil prices after the beginning of the Ukraine crisis. The Kuwaiti oil minister said that the OPEC+ strategy of monthly crude production increases ensures market stability and balance. Minister Mohamed al-Fares also said that the group, comprised of the Organization of Petroleum Exporting Countries and allies including Russia, was monitoring coronavirus lockdowns in Chinese cities and any possible supply disruptions. OPEC+ agreed to another modest monthly oil output increase, arguing that the producer group could not be blamed for disruptions to Russian supply and saying China's coronavirus lockdowns threatened the outlook for demand.
 
Technically market is under fresh buying as the market has witnessed a gain in open interest by 17.52% to settle at 8305 while prices up 182 rupees, now Crude oil is getting support at 8322 and below same could see a test of 8197 levels, and resistance is now likely to be seen at 8563, a move above could see prices testing 8679.  
 
Trading Ideas:
# Crude oil trading range for the day is 8197-8679.
# Crude oil prices climbed amid supply worries after the EU proposed some of its toughest measures yet against Russia, including a total ban on oil imports.
# The OPEC countries are not willing to replace Russian oil despite concerns about slower demand in China due to Covid 19.
# Oil releases so far are just 9% of stocks, "can come back again if a problem" – IEA head

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