Crude oil prices marginally increased by 0.03% to settle at 6587 following the release of EIA data indicating a draw in US crude oil stocks. The decrease of 1.361 million barrels fell slightly short of market expectations, leading to a tempered market response. However, reports suggesting potential discussions within OPEC+ about increasing crude production contributed to a drop in crude oil prices during trading. Meanwhile, the US Energy Department's announcement of plans to purchase up to 3.3 million barrels of oil for the Strategic Petroleum Reserve (SPR) highlighted ongoing efforts to replenish reserves, which were depleted following President Biden's directive for a significant sale of 180 million barrels after Russia's 2022 invasion of Ukraine.
The decision to halt oil purchases for the reserve reflects crude oil prices consistently trading above the desired price threshold. The U.S. Energy Information Administration (EIA) revised its forecasts, anticipating slower growth in global oil demand compared to earlier projections. The agency attributed this adjustment to increased output from regions outside the Organization of the Petroleum Exporting Countries (OPEC) and decreased demand from developed economies. Despite the slight downward revision, the EIA maintains expectations for growth in oil consumption this year.
From a technical standpoint, the market observed short covering, with a decrease in open interest and a modest increase in prices. Crude oil is expected to find support at 6476, with potential downside testing of 6366 levels. Conversely, resistance is likely at 6654, with a breakout possibly leading to a test of 6722.