Crude Oil Gains As Ongoing Attacks In The Red Sea, Sparking Supply Worries.

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Crude Oil Gains As Ongoing Attacks In The Red Sea, Sparking Supply Worries.

Crude oil posted a gain of 0.74%, settling at 6514, driven by ongoing attacks from Houthi militants in the Red Sea, raising concerns about supply disruptions. The U.S. Federal Reserve signalled a potential delay in interest rate cuts, with Fed Governor Christopher Waller suggesting a postponement by at least two more months. This stance could impact economic growth and potentially curb oil demand. The Energy Information Administration (EIA) reported an increase in U.S. crude oil stockpiles by 3.5 million barrels to 442.9 million barrels, contrary to expectations of a 3.9 million-barrel rise. 

Additionally, crude stocks at the Cushing, Oklahoma delivery hub rose by 741,000 barrels to 29.5 million. Gasoline stocks fell by 294,000 barrels to 247 million barrels, while distillate stockpiles, including diesel and heating oil , declined by 4 million barrels to 121.7 million barrels. Refinery crude runs rose by 31,000 barrels per day, and refinery utilization rates remained unchanged at 80.6% for the week. These inventory dynamics suggest a mixed picture for crude oil, with rising stockpiles but notable declines in gasoline and distillate inventories. 

From a technical perspective, the crude oil market is experiencing fresh buying, with a 14.39% increase in open interest to settle at 6289, coupled with a price rise of 48 rupees. Support is identified at 6437, and a breach could test 6359, while resistance is anticipated at 6564, with a move above potentially leading to a test of 6613. Traders should closely monitor both geopolitical developments and inventory data for potential shifts in crude oil prices.

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