Crude oil gains largely due to some short-covering and speculative buying

yesterday settled up by 0.74% at 5689 due to some short-covering and speculative buying. Oil prices have also come under pressure after official data showed manufacturing activity in China, the world’s top crude importer, fell unexpectedly in April. This marks the first contraction in the manufacturing purchasing managers’ index since December. OPEC oil output fell in April due to a halt in some of Iraq’s exports and delays to Nigerian shipments, adding to the impact of strong adherence by top producers to a supply cut deal by the wider OPEC+ alliance.

The Organization of the Petroleum Exporting Countries pumped 28.62 million barrels per day (bpd) last month, the survey found, down 190,000 bpd from March. Output is down more than 1 million bpd from September. The survey aims to track supply to the market. It is based on shipping data provided by external sources, Refinitiv Eikon flows data, information from companies that track flows such as Petro-Logistics and Kpler, and information provided by sources at oil companies, OPEC and consultants. Iraq produced 3.938 million barrels per day (bpd) of crude in April, down by 262,000 bpd from March.

Technically market is under short covering as the market has witnessed a drop in open interest by -1.29% to settle at 19840 while prices are up 42 rupees, now Crude oil is getting support at 5580 and below the same and could see a test of 5471 levels, and resistance is now likely to be seen at 5763, a move above could see prices testing 5837.



Source link