Crude oil fell at 6607 as more data pointed to a potential future recession that might hurt energy consumption.
The US’s services industry progress slowed to a three months low, private sector companies added less jobs than anticipated, and industrial orders declined for the second consecutive month, according to data, raising the possibility that the economy may be cooling.
After OPEC+ suddenly declared that it would cut production by 1.16 barrel every day from May till to the end of 2023, prices increased by around 5% in the following week.
The most recently EIA statistics revealed greater-than-anticipated decreases in US petrol and crude stocks. More than the market anticipated, the US crude oil stocks dropped by 3.739 million barrel last week.
Distillate stockpiles decreased by 3.632 million while petrol stockpiles fell by 4.119 million. For the third consecutive month, Saudi Arabia has increased the cost of its premium crude for Asian consumers.
According to Energy Information Administration data, U.S. field production of crude oil increased in Jan to 12.46 million barrels each day, the high level since Mar 2020.
According to EIA data, the amount of oil and petroleum products produced in the United States, a proxy for demand, increased to 19.54 million bpd, the highest point since November 2022.
Now, Crude Oil is receiving support at 6532, and a move below that level could result in a test of 6480 levels. Meanwhile, resistance is now likely to be seen at 6640, and a rise above could result in a test of 6685 levels.