Crude oil gains amid weaker dollar and China growing concerns over fuel demand.

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Crude oil gains amid weaker dollar and China growing concerns over fuel demand.
Credit: © Reuters.

Crudeoil yesterday settled up by 1.3% at 6704 amid a weaker dollar and China stimulus optimism outweighed growing concerns over fuel demand. Prices were also supported by concerns that a tropical storm off the U.S. Gulf Coast may impact supply. Meanwhile, Idalia has strengthened into a hurricane with maximum sustained winds of 75 mph and stronger gusts. 

The system is expected to "rapidly intensify" and make landfall in Florida, likely causing some production shutdowns in the oil-producing Gulf of Mexico region. U.S. field production of crude oil rose last week by 100,000 barrels per day (bpd) to 12.8 million bpd, the highest since March 2020, the U.S. Energy Information Administration (EIA) said in its weekly Petroleum Status Report. That was also the first time field production increased for three weeks in a row since December 2021. U.S. crude oil inventories fell last week as refinery processing surged and crude output reached their highest since the coronavirus pandemic decimated fuel consumption, Energy Information Administration data showed. Crude inventories fell by 6.1 million barrels in the week to Aug. 18 to 433.5 million barrels, compared with expectations for a 2.8 million-barrel drop. 

Technically market is under fresh buying as the market has witnessed a gain in open interest by 16.1% to settle at 4946 while prices are up 86 rupees, now Crudeoil is getting support at 6613 and below same could see a test of 6522 levels, and resistance is now likely to be seen at 6752, a move above could see prices testing 6800.

  

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  • dhana dhana @dhana dhana
    both Funda& Technl. analysis
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