Crude Oil Slipped Amid Low Demand Due to Prolonged Covid Lockdowns in China

  • Commodities Analysis

Crude oil yesterday settled down by -2.16% at 7885 as concerns about the demand outlook due to prolonged COVID lockdowns in China outweighed support from a possible European oil embargo on Russia over its actions in Ukraine. Iraq exported a total of 101.4 million barrels of oil in April, raising revenues of $10.55 billion, the oil ministry said in a statement. Over the month, exports averaged 3.4 million barrels per day, it added.
 
Libya's National Oil Corporation (NOC) announced the "temporary" lifting of force majeure and resumption of operations at the Zueitina oil terminal in order to reduce stock and free up storage capacity. The state oil company had warned of "imminent environmental disaster" at the facility unless tanks were emptied, after last week declaring force majeure due to a political standoff.
 
A missile attack targeted an oil refinery in Iraq's northern city of Erbil causing a fire in one of its main tanks that were later brought under control, the Iraqi security forces said in a statement. A missile also landed in the outer fence of the refinery without causing any casualties, the statement added. The anti-terrorism authorities in the Kurdistan region said six missiles landed near the KAR refinery in Erbil, adding they were launched from Nineveh province.
 
Technically market is under long liquidation as the market has witnessed a drop in open interest by -25.66% to settle at 4220 while prices are down -174 rupees, now Crude oil is getting support at 7803 and below same could see a test of 7722 levels, and resistance is now likely to be seen at 8012, a move above could see prices testing 8140.
  
Trading Ideas:
# Crude oil trading range for the day is 7722-8140.
# Crude oil slipped amid concerns about the demand outlook due to prolonged COVID lockdowns in China
# Iraq oil exports reach 101 mln barrels in April – ministry
# Libya's NOC temporarily lifts force majeure at Zoueitina oil terminal
 

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