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Crude oil recorded a significant decrease of -1.07%, closing at 72.27, driven by concerns that energy demand might weaken due to slowing global economic growth. Data revealed China’s trade surplus narrowing in August, with declining exports attributed to softer external demand and imports suffering losses due to weak domestic consumption. Despite this, the international oil benchmark remains close to its highest levels since November last year, as Saudi Arabia and Russia, leaders of OPEC+, extended supply cuts until year-end.
API data indicated a substantial decrease of about 5.5 million barrels in US crude stockpiles last week, marking the fourth consecutive weekly decline and surpassing expectations of a 1.429 million barrel draw. US stockpiles have dropped over 6% in the past month, reflecting high refinery utilization rates to meet global energy demand, according to the Energy Information Administration. Crude inventories fell by 6.3 million barrels, triple the expected 2.1 million barrel drop. Cushing, Oklahoma, delivery hub stocks also saw a significant decline of 1.8 million barrels.
From a technical perspective, the market witnessed long liquidation, with open interest dropping by -24.43% and settling at 8,273. Prices declined by -78 rupees. Support for Crude oil is expected at 7,174, with the potential for testing at 7,122 if it falls below this level. Resistance is likely at 7,285, and a move above this level could lead to testing at 7,344.
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