Crude oil rose due to Saudi and Russian supply concerns and a stronger dollar.

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Crude oil rose due to Saudi and Russian supply concerns and a stronger dollar.

Crude oil prices closed 1.21% higher at $73.05 on the back of a stronger dollar and concerns about supply cuts from Saudi Arabia and Russia. These cuts, extended to year-end, amounted to 1 million and 300,000 barrels per day respectively, compounding the reductions agreed upon by OPEC+ producers. The market remained jittery due to global economic uncertainties, fueled by soft manufacturing and services data in major economies.

In June, U.S. crude oil shipments by rail dropped by 23,000 barrels per day to 227,000 bpd, according to the U.S. Energy Information Administration. U.S. crude oil and gasoline inventories were expected to decrease, while distillate stockpiles were anticipated to rise. Notably, U.S. crude oil production reached 12.8 million bpd, the highest since March 2020, reflecting a significant increase of 100,000 bpd.

From a technical perspective, the market exhibited signs of fresh buying, with open interest increasing by 5.28% to reach 10,947 contracts. Prices surged by 87 rupees. Crude oil now finds support at 7,195, and a breach of this level could test 7,085. Conversely, resistance is likely to emerge at 7,365, and a break above this level might propel prices towards 7,425.

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