Crudeoil on MCX settled up 1.16% at 3734 gained
Crudeoil on MCX settled up 1.16% at 3734 gained as rupee weakness supported while Nymex Crude oil edged down by 0.3% to settle at $57.20/bbl, the first loss in four sessions after a furious rally took them to 2-year highs in the previous session. Traders are becoming convinced that OPEC will do whatever it takes to re-balance the global oil market in 2018. Even hitherto reluctant Nigeria is reportedly on board with plans to extend OPEC’s supply quota plan with Russia, according to reports. While pressure seen as tension flared between Saudi Arabia and Iran, just as the Saudi crown prince tightened his grip on power. Saudi Crown Prince Mohammed bin Salman moved to shore up his power base with the arrest of royals, ministers and investors, which an official described as part of “phase one” of the crackdown. More tellingly, tensions escalated between OPEC members Saudi Arabia and Iran and it was this, more than the purge, that rattled the oil market. In economic news, job openings were little changed in September, keeping the opening rate at a record high 4.0 percents, according to the so-called JOLTS report from the Bureau of Labor Statistics. Job openings in the third quarter were up 7 percent from a year earlier. Yesterday the API said US crude oil stocks fell by 1.562mbls last week, less than expected. Gasoline stocks rose by 520,000 barrels, while distillate inventories slipped 3.133mbls. market expected a 2.7mbls drop in crude, a 2.100mbls decline in distillates and a 2.176mbls easing in gasoline inventories expected. Supplies at the oil storage hub of Cushing, Oklahoma, rose by 812,000 barrels. Technically market is getting support at 3709 and below same could see a test of 3684 level, And resistance is now likely to be seen at 3754, a move above could see prices testing 3774.
# Crudeoil trading range for the day is 3684-3774.
# Crude oil remained supported amid tension flared between Saudi Arabia and Iran, and the Saudi crown prince tightened his grip on power.
# Saudi Energy Minister said that while there is “satisfaction” with a production-cutting deal between the OPEC and other producers led by Russia, the “job is not done yet.”
# OPEC is expected to extend a cut of around 1.8 million barrels per day into the whole of 2018