Crude Oil - Outlook - April 7, 2021 - Reliance Securities
(Time Zone: Arizona, USA)
Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities
International oil prices rose on Tuesday as strong economic data from China and the United States brightened recovery prospects.
Domestic crude prices rose on Tuesday, tracking overseas prices.
U.S. services activity touched a record high in March, while China's service sector also gathered steam with the sharpest increase in sales in three months.
Prices also found support as inventory fell. According to data from American Petroleum Institute U.S. crude stockpiles were down by 2.6 million barrels in the week ended April 2.
In the United States, oil production is expected to fall by 270,000 bpd in 2021 to 11.04 million bpd, the U.S. Energy Information Administration (EIA) said, a steeper decline than its previous monthly forecast for a drop of 160,000 bpd.
International oil prices have started higher this Wednesday morning in Asian trade ahead of inventory data tonight from EIA.
Technically, WTI Crude Oil supports are at $59.00 and $58.40. Resistances are at $59.80 and $60.50.
Domestic crude could start higher this Wednesday morning, tracking international prices.
Technically, MCX Crude Oil April supports are at 4320 and 4240. Resistances are at 4390 and 4450.
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