Yesterday, crude oil fell -1.58% to settle at 6235 as concerns about a potential recession in the world’s largest economy were stoked by disappointing U.S. data. Signs of strengthening short-term consumption growth are being countered by pressure witnessed amid ongoing economic concerns and anticipation of more interest rate hikes that could restrain fuel demand growth.
OPEC+ is still a useful tool for coordinating the world oil markets, according to Alexander Novak, deputy prime minister of Russia. According to statistics from the EIA Petroleum Status Report, US crude oil inventories decreased by 5.054 million barrels in the week ending April 21st, 2023, the most in a month and more than twice as much as the market expected.
In the meantime, crude stocks at the Cushing, Oklahoma delivery hub increased by 0.319 million barrels, the first time since the week ending February 24th, and petrol inventories decreased by 2.408 million, more than the anticipated 0.933 million declines. Stockpiles of distillates, which include diesel and heating oil, also decreased by 0.576 million barrels, contrary to expectations for a 0.839 million reduction. Investors are now awaiting a plethora of U.S. economic data to assess the state of the largest oil user in the world.
This week, major oil corporations including Exxon Mobil (NYSE: XOM) and Chevron Corp (NYSE: CVX) will release their first-quarter financial results. Technically, the market is experiencing new selling as open interest increased by 47.61% to close at 9373 while prices decreased by 100 rupees. Currently, crude oil is receiving support at 6164, and a move below that level could result in a test of the 6094 levels. Meanwhile, resistance is now likely to be seen at 6347, and a move above could result in a test of the 6460 levels.
