Producers may then need to pump a further 2 million bpd to meet the demand. The Organization of the Petroleum Exporting Countries (OPEC), which has been withholding supply in tandem with other producers including Russia, this week raised its forecast for global oil demand this year. OPEC expects demand to rise by 70,000 bpd from last month’s forecast and global demand is likely to rise by 5.95 million bpd in 2021, it said. inventories were down by 5.9 million barrels last week.
The Energy Information Administration (EIA) said, more than double expectations for a 2.9 million-barrel decline. East Coast crude stocks hit a record low. Gasoline supplied to the market last week, an indicator of U.S. consumption of the fuel, increased to 8.9 million barrels per day (bpd), the highest since August, EIA report said.
Technically market is under long liquidation as the market has witnessed a drop in open interest by -41.57% to settled at 3172 while prices down -10 rupees, now Crude oil is getting support at 4698 and below same could see a test of 4655 levels, and resistance is now likely to be seen at 4778, a move above could see prices testing 4815.
# Crude oil trading range for the day is 4655-4815.
# Crude oil prices eased on profit booking after prices rallied as IEA and OPEC raised forecasts for oil demand as major economies recover from the pandemic.
# Global oil demand and supply are set to be rebalanced in the second half of this year after the evaporation of demand in 2020 as the COVID-19 pandemic raged
# OPEC expects demand to rise by 70,000 bpd from last month’s forecast and global demand is likely to rise by 5.95 million bpd in 2021