Crude oil fell as uncertainty in OPEC+ voluntary output cuts & lower global demand.

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Crude oil fell as uncertainty in OPEC+ voluntary output cuts & lower global demand.

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.

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