Crude oil up gains Saudi Arabia extends cuts.

Crude oil yesterday settled up by 3.13% at 6761 after Saudi Arabia extended its voluntary one million barrel per day output cut by another month to the end of September. Saudi Arabia will extend a voluntary oil output cut of one million barrels per day for another month including September. “This additional voluntary cut comes to reinforce the precautionary efforts made by OPEC+ countries to support the stability and balance of oil markets”.

Russia will cut oil exports by 300,000 barrels per day in September, Deputy Prime Minister Alexander Novak said. “Within the efforts to ensure the oil market remains balanced Russia will continue to voluntarily reduce its oil supply in September, now by 300,000 barrels per day, by cutting its exports by that quantity to global markets,” Novak said. stocks fell the most on record last week as exports topped 5 million barrels per day and refineries processed more crude, the Energy Information Administration said. Most of the fall in crude stocks came from a record drop in stockpiles held in the refining hubs of the U.S. Gulf Coast. Stocks there fell by 15.57 million barrels as refiners in the region processed the most crude since August 2022, the EIA said.

Technically market is under fresh buying as the market has witnessed a gain in open interest by 31.07% to settle at 9500 while prices are up 205 rupees, now Crude oil is getting support at 6593 and below the same could see a test of 6425 levels, and resistance is now likely to be seen at 6854, a move above could see prices testing 6947.