Crude oil up settled yesterday by 0.13% at 4658 on reports the Organization of the Petroleum Exporting Countries (OPEC) and its allies are likely to delay their plans to any significant increase crude output for now.
Crude Oil Up On Reports
The OPEC+ joint technical committee (JTC) has kept its forecast for growth in global oil demand this year, but is concerned about surging COVID-19 cases in India and elsewhere, three sources from the producer group told.
In its most recent monthly oil market report, the Organization of the Petroleum Exporting Countries (OPEC) raised its forecast for global oil demand growth by 70,000 barrels per day (bpd) to 5.95 million bpd. “Demand growth is still at 6 million bpd for 2021,” one of the sources said. The JTC meeting also expressed concern about rising COVID-19 cases in India, Japan, and Brazil, the sources added.
The Organization of the Petroleum Exporting Countries and allies led by Russia, known as OPEC+, surprised the market at its April 1 meeting by agreeing to ease production curbs by 350,000 barrels per day (bpd) in May, another 350,000 bpd in June, and a further 400,000 bpd or so in July.
The producer group will hold a largely technical meeting this week, with major changes to policy unlikely, Russian Deputy Prime Minister and OPEC+ sources said last week.
Technically market is under fresh buying as the market has witnessed a gain in open interest by 9.81% to settled at 5140 while prices up 6 rupees, now Crude oil is getting support at 4588 and below same could see a test of 4519 levels, and resistance is now likely to be seen at 4695, a move above could see prices testing 4733.