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prices took a 2.17% dip, closing at 7,623 due to profit-taking, following a surge driven by unexpected drops in crude inventories. U.S. government data revealed a more substantial than anticipated 2.2 million barrel decrease in crude stockpiles, underlining supply constraints linked to production cuts by Saudi Arabia and Russia. Specifically, crude stocks at the Cushing, Oklahoma storage hub declined by 943,000 barrels, hitting their lowest point since July 2022.
The ongoing drop in Cushing’s stockpiles has raised concerns about the quality and operational levels of remaining oil at the hub. Additionally, worries persist about tight oil supplies heading into winter, driven by Saudi Arabia and OPEC+ implementing production cuts of 1.3 million barrels per day until year-end. On another note, Russian President Vladimir Putin took action to stabilize retail fuel prices in response to a recent spike attributed to increased exports.
From a technical standpoint, the market experienced long liquidation, with open interest dropping by -32.32% to 7,682. Crude oil prices fell by -169 rupees. Key support levels are identified at 7,530 and 7,436, while resistance is likely at 7,801. A potential breakout above this resistance could lead to a test of 7,978.
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