Crude Oil Down After Official Figures Showed Big Increase In U.S. Gasoline Stock

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Crude Oil  Down After Official Figures Showed Big Increase In U.S. Gasoline Stock

yesterday settled down by -0.14% at 4438 after official figures showed a big increase in U.S. gasoline stocks, causing concerns about demand for crude weakening in the world’s biggest consumer of the resource at a time when supplies around the world are rising. Russian Urals oil exports in April were revised up by 0.1 million tonnes on Wednesday following several other increases this week and last, pushing up overall Baltic exports of the grade to 4.5 million tonnes this month.
  
Iran may see some sanctions lifted and add to global supplies, with the U.S. and other powers holding talks on reviving a nuclear deal that almost stopped Iranian oil from coming to market. Crude stocks in the United States fell more than forecasted, gasoline inventories jumped sharply, also against expectations, the Department of Energy said.
 
Oil inventories dropped by 3.5 million barrels last week to nearly 502 million barrels, while gasoline stocks increased by 4 million barrels, against expectations of a decline, to just over 230 million barrels, as refiners ramped up production before the summer driving season. Still, the International Monetary Fund said earlier this week that the massive public spending deployed to combat the COVID-19 pandemic may increase global growth to 6% this year, a rate not achieved since the 1970s.
 
Technically market is under fresh selling as the market has witnessed a gain in open interest by 0.26% to settled at 4702 while prices down -6 rupees, now Crude oil is getting support at 4397 and below same could see a test of 4355 levels, and resistance is now likely to be seen at 4478, a move above could see prices testing 4517.
        
Trading Ideas:   
#             Crude oil trading range for the day is 4355-4517.
#             Crude oil prices fell after official figures showed a big increase in U.S. gasoline stocks, causing concerns about demand
#             Oil inventories dropped by 3.5 million barrels last week to nearly 502 million barrels
#             At the same time, supply is rising across the world with Russian output increasing from average March levels in the first few days of April

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