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Crude oil gains after Russia and Saudi Arabia urge all OPEC+ countries to join output deal

Published 08-12-2023, 03:11 pm
© Reuters.  Crude oil gains after Russia and Saudi Arabia urge all OPEC+ countries to join output deal
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Crude oil experienced a slight decline of -0.31%, settling at 5802, as Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman urged all OPEC+ countries to adhere to the group's agreement on output cuts. The joint statement emphasized the alignment of interests with the global economy. The collaborative effort between Russia and Saudi Arabia extended to the importance of enhancing cooperation in oil and gas, including equipment supplies. 

In the aftermath of the recent OPEC+ meeting, Saudi Arabia committed to extending voluntary oil output cuts of 1 million barrels per day into the first quarter. Simultaneously, Russia pledged to sustain a reduction in oil exports by 300,000 bpd and further trim fuel exports by 200,000 bpd from January to March. However, China's November data indicated a 13.3% decrease in crude oil imports to 42.45 million tonnes from the previous month. Despite this decline, imports of oil products rose by 0.7% to 4.16 million tonnes, while exports of oil products fell by 1.7% to 5.08 million tonnes. Meanwhile, the US continued its robust performance in crude oil exports, reaching nearly a record 6 million barrels a day in October.

From a technical standpoint, the market is currently witnessing fresh selling, with a 2.42% gain in open interest, settling at 18664. Despite this, prices experienced a notable decline of -18 rupees. Support for Crude oil is identified at 5740, with a potential test of 5679 levels if breached. On the upside, resistance is anticipated at 5877, and a breakthrough could propel prices to test the 5953 level.

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