Crude oil prices rose by 1.28% to settle at ₹5,858, supported by comments from Russia’s Deputy Prime Minister Alexander Novak, who hinted that OPEC+ might reconsider its output increase after April. This statement fueled optimism in the market, despite a 5% decline in China’s crude oil imports in the first two months of 2025. The drop in imports was attributed to stricter U.S. sanctions on Russian and Iranian oil shipments and port restrictions in China, impacting the world’s top importer. In the U.S., crude oil inventories showed mixed trends.
The American Petroleum Institute (API) reported a drawdown of 1.455 million barrels for the week ending February 28, marking the second consecutive week of declines. However, the Energy Information Administration (EIA) reported a larger-than-expected inventory build of 3.614 million barrels, driven by a 1.124 million barrel increase at the Cushing, Oklahoma hub. Gasoline and distillate stockpiles, however, saw notable declines, with gasoline stocks falling by 1.433 million barrels and distillates dropping by 1.318 million barrels. On the production front, the EIA revised its outlook for U.S. crude oil output, projecting an average of 13.59 million barrels per day in 2025, slightly higher than previous estimates.
Technically, the market is witnessing short covering as open interest fell by 20.45% to 5,486 contracts. Support is at ₹5,780, with a possible test of ₹5,701, while resistance is at ₹5,942, and a breakout could push prices towards ₹6,025.
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