Crude oil experienced a marginal decline of -0.01% yesterday, settling at 6933, as concerns over geopolitical tensions waned and US oil inventories surged. The Energy Information Administration reported a significant increase in US crude stocks, rising by 2.7 million barrels to 460 million barrels, exceeding market expectations. Additionally, crude stocks at the Cushing, Oklahoma delivery hub saw a slight uptick. Despite a rise in refinery crude runs, utilization rates declined slightly.
Furthermore, data from the API's Weekly Statistical Bulletin revealed a consecutive weekly increase in crude oil inventories, marking the largest weekly gains in four weeks. Fading prospects of US interest rate cuts and weaker economic data from China for March contributed to a dampened demand outlook. Moreover, the US announced plans to reimpose oil sanctions on Venezuela, while the European Union discussed potential sanctions on Iran following its attack on Israel over the weekend.
Technically, the market witnessed long liquidation, with a significant drop in open interest by -68.87%. Currently, crude oil finds support at 6840, with a potential test of 6746 below this level. Resistance is expected at 7006, with a possible upward movement towards 7078 upon breaching this threshold. Traders should closely monitor inventory levels, geopolitical developments, and technical indicators for potential trading opportunities in the crude oil market.