MCX Crude oil prices closed at 6887 yesterday, up 1.25% from the previous day, this increase was fueled by a number of factors, including lower exports of crude from Saudi Arabia and Iraq as well as indications of increased demand or economic growth in both China and the US.
Gains were, however, offset by the possibility of higher Russian oil exports, especially since Ukrainian attacks on the country’s oil infrastructure reduced domestic refining activity.
In March, Russia announced plans to increase oil exports through its western ports, potentially adding nearly 200K (bpd) to its monthly plan of 2.15 million bpd, despite the positive momentum in the global oil markets.
Furthermore, the Energy Information Administration (EIA) of the United States predicted that in April, oil output from the leading shale-producing regions would increase to its highest level in four months.
The Permian basin is anticipated to lead the increase in production, with 6.1 million bpd becoming the third-highest monthly production on record. Together, these regions are expected to produce more than 9.77 million bpd.
Additionally, it is expected that production in the Bakken and Eagle Ford regions will increase, indicating a general increase in U.S. crude oil output.
Technically, there was new buying in the market as open interest increased significantly by 39.19% to settle at 5029. Right now, 6817 is providing support for MCX crude oil prices, and a test of 6748 could occur below this level.
Resistance is anticipated at 6926 on the upside, and a move above it is probably going to take the price to test the 6966 point.