Crude oil prices edged lower by 0.05% to ₹6,561 as market sentiment was weighed down by U.S. President Donald Trump’s energy strategy, which aims to boost oil and gas production domestically. Trump’s declaration of a national energy emergency and plans to export U.S. energy globally raised concerns over a potential oversupply in an already competitive market. Adding to the mixed outlook, North Dakota’s oil output was reportedly down by 130,000 to 160,000 barrels per day due to extreme cold weather and operational disruptions. Citi raised its 2025 Brent crude oil forecast to $67 per barrel, up from $62, citing geopolitical risks linked to Iran and Russia. Meanwhile, U.S. crude inventories fell for the eighth consecutive week, declining by 1.961 million barrels, exceeding expectations of a 1.6 million-barrel draw.
However, gasoline inventories surged by 5.852 million barrels, much higher than the expected 2.6 million-barrel build, while distillate stocks rose by 3.077 million barrels. Net U.S. crude imports also dropped by 1.304 million barrels per day. The Energy Information Administration (EIA) revised its 2024 U.S. oil production estimate to 13.55 million barrels per day, driven by growth in the Permian Basin.
Technically, the market witnessed long liquidation, with open interest falling by 2.97% to 8,083 contracts. Crude oil finds support at ₹6,520, with a break below potentially testing ₹6,478, while resistance is seen at ₹6,609, and a move above could push prices to ₹6,656.