Crude oil dropped amid profit taking and lack of details on China’s stimulus

Crude oil yesterday settled down by -0.86% at 6473 amid profit taking and the lack of details on China’s stimulus measures weighed on prices. stocks, gasoline and distillate inventories fell last week, the Energy Information Administration said. Crude inventories fell by 600,000 barrels in the last week to 456.8 million barrels, compared with expectations for a 2.3 million-barrel drop. 

Crude stocks at the Cushing, Oklahoma, delivery hub fell by 2.6 million barrels in the last week, EIA said. Refinery crude runs fell by 107,000 barrels per day in the last week, EIA said. U.S. gasoline stocks fell by 786,000 barrels in the week to 217.6 million barrels, the EIA said, compared with expectations for a 1.7 million-barrel drop. Net U.S. crude imports fell by 1.58 million barrels per day, EIA said. Data from the American Petroleum Institute showed U.S. crude stocks rose by about 1.3 million barrels in the week that ended on July 21, denting optimism about the world’s economic recovery. The oil market remains supported by output cuts from OPEC+, with the group signalling readiness to take additional measures if needed. 

Technically market is under long liquidation as the market has witnessed a drop in open interest by -11.07% to settle at 9575 while prices are down -56 rupees, now Crude oil is getting support at 6439 and below same could see a test of 6406 levels, and resistance is now likely to be seen at 6522, a move above could see prices testing 6572.