Crude oil dropped as weak U.S. data that raised fears of recession

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Crude oil dropped as weak U.S. data that raised fears of recession
Credit: © Reuters.

Crude oil yesterday settled down by -1.58% at 6235 as weak U.S. data raised fears of a recession in the world's biggest economy. Pressure seen amid lingering economic concerns and expectations of further interest rate hikes that could curtail fuel demand growth is countering signs of improving short-term consumption gains. Russian Deputy Prime Minister Alexander Novak said that OPEC+ remains an efficient tool for coordination on global oil markets. US crude oil inventories fell by 5.054 million barrels in the week ending April 21st, 2023, the largest decline in a month and compared with market consensus of a 1.486 million drop, data from the EIA Petroleum Status Report showed.

Meanwhile, crude stocks at the Cushing, Oklahoma delivery hub rose by 0.319 million barrels, the first period of increase since the week ending February 24th, and gasoline inventories fell by 2.408 million, more than an expected 0.933 million draw. Distillate stockpiles, which include diesel and heating oil , were also down by 0.576 million barrels, compared with forecasts for a 0.839 million drop. Investors now look ahead to a raft of US economic data to gauge the health of the world’s largest oil consumer. Major oil companies, including Exxon Mobil (NYSE: XOM ) and Chevron Corp (NYSE: CVX ), will be reporting first-quarter earnings this week.

Technically market is under fresh selling as the market has witnessed a gain in open interest by 47.61% to settle at 9373 while prices are down -100 rupees, now Crude oil is getting support at 6164 and below the same and could see a test of 6094 levels, and resistance is now likely to be seen at 6347, a move above could see prices testing 6460.

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