Crude oil faced a 1.97% decline, closing at 6157, primarily attributed to uncertainties surrounding OPEC+ voluntary output cuts and a dim global demand outlook. While Saudi Arabia, UAE, and Kuwait announced additional cuts, some members are yet to pledge. Brazil's entry into the alliance, targeting a 3.8 million bpd increase next year, added to the complexity.
The Baker Hughes report indicated a surge in US oil rigs to 505, the highest since September, possibly influencing global supply dynamics. On the demand front, subdued manufacturing activity in the US and China raised concerns about weakened energy demand. Geopolitical tensions in the Middle East, with intensified fighting in Gaza, maintained market unease. Notably, the US crude production reached a record 13.24 million bpd in September, reflecting a 1.7% monthly increase, largely fueled by North Dakota's substantial rise, reaching 1.3 million bpd.
From a technical standpoint, the market witnessed a 6.84% surge in open interest, settling at 12634, while prices fell by 124 rupees. Current support is identified at 6075, with potential downside testing at 5994. Resistance is projected at 6242, and a breakthrough might propel prices to 6328.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.