Crude oil prices surged by 2.29% to settle at 5935 following joint efforts by Saudi Arabia and Russia to rally OPEC+ members towards output cuts. The agreement entails a combined 2.2 million barrels per day reduction for the first quarter of the next year. Chinese data revealed a 9% YoY decline in crude oil imports for November due to high inventory levels and weak economic indicators.
Meanwhile, U.S. output remained at over 13 million bpd, contributing to a global surplus. Resilient U.S. job growth and a lower unemployment rate diminished expectations of early Fed interest rate cuts. In Nigeria, the Dangote oil refinery is set to become a net exporter after receiving its first 1 million barrels of crude oil cargo, marking a significant shift from import reliance.
From a technical standpoint, the market is witnessing short covering, with a 17.62% drop in open interest to 15375, alongside a price increase of 133 rupees. Crude oil finds support at 5856, and a break below could test 5776 levels. On the upside, resistance is likely at 6000, with a move above potentially testing 6064 levels.