Crude Oil - Commodity Snippet - Dec 9, 2020 - Reliance Securities

International oil prices ended flat on Tuesday as restrictions in the U.S. and Europe offset optimism surrounding the vaccine advancements.

Investors were also closely watching U.S. lawmakers' efforts to approve a new economic stimulus package needed to drive jobs growth and energy demand.

The OPEC+ group of oil producers is likely to hold their next meeting on Jan. 4, after agreeing last week to raise oil output by 500,000 barrels per day (bpd) next month.

U.S. crude oil production is expected to fall by 910,000 bpd in 2020 to 11.34 million bpd, the U.S. Energy Information Administration said, a bigger decline than its previous forecast for a drop of 860,000 bpd.

Meanwhile, American Petroleum Institute showed U.S. oil inventories rose sharply across the board last week, with crude stocks jumping by 1.14 million barrels, contrary to analyst forecasts in a Reuters poll for a 1.4 million-barrel draw.

Domestic crude ended lower on Tuesday, tracking weak WTI prices.

International and Domestic Outlook

International oil prices have started marginally lower this Wednesday morning in Asian trade. Technically, WTI Crude Oil could continue its sideways to marginal downside momentum below $46.00 levels, where $45.30-$44.80 will be immediate support and resistance is at $46.10-$47.20 levels.

Domestic crude could start marginally lower this Wednesday morning, tracking international prices.

Technically, MCX Crude December has bounced back from 3330 levels where above 3390 could trade on a positive note up to 3440-3500 levels. Support at 3340-3300 levels.

Source : Equity Bulls

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