Crude oil prices increased 1.23% to 6478, following the International Monetary Fund’s (IMF) optimistic growth projected for the global economy in 2024. But worries about demand surfaced because of China’s worsening real estate crisis. Especially after a Hong Kong court ordered China Evergrande Group to go into liquidation.
Concerns concerning the effects on the biggest consumer of crude oil worldwide were stoked by this development. Regarding supply, it was estimated that for the majority of 2023. Iran’s crude oil exports ranged from 1.2 million to 1.6 million barrels per day (bpd). Accounting for a sizeable portion (1–1.5%) of the world’s oil supply.
A decision regarding group’s oil policy for April is not anticipated to be made at OPEC+ meeting on February 1.
Saudi Arabia’s Key Decision: Aramco’s Maximum Sustainable Output Kept at 12 Million bpd
The Saudi energy ministry instructed Saudi Aramco (TADAWUL:2222) to keep its maximum sustainable ability at 12 million barrels per day instead of raising it to 13 million barrels per day. Which is a significant sign of the demand outlook for the future.
According to the Energy Information Administration (EIA), the amount of crude oil in U.S. stocks dropped significantly in the week ending January 19, from 420.7 million barrels to 9.2 million barrels.
This draw was higher than anticipated, with a 2.1 million barrel decline in U.S. crude imports accounting for 1.2 million of the draw. Fuel demand, refinery, imports, and crude production were all impacted by the unfavourable winter weather.
Technically speaking, the crude oil market is showing new buying momentum, as evidenced by the 0.54% rise in open interest that saw the market close at 8704.
The cost has increased by 79 rupees. Support for crude oil prices is seen at 6364. And a test of the 6250 levels is possible on the downside. Resistance is anticipat at 6541 on the upside. And a break through could result in a test of the 6604 levels.