Crude oil prices settled by 0.7% at ₹5,810 amid concerns over the demand outlook despite a larger-than-expected drop in U.S. crude inventories. U.S. crude inventories fell by 6.9 million barrels in the last week of August, significantly above the forecasted 1.1 million-barrel draw, marking the ninth consecutive decline in ten months. Additionally, stocks at the Cushing, Oklahoma hub fell by 1.1 million barrels, and distillate fuel inventories dropped by 0.4 million barrels, against expectations of a 1 million-barrel build. However, gasoline inventories rose by 0.8 million barrels, defying forecasts of a 0.7 million-barrel draw.
OPEC+ is nearing a decision to delay a planned 180,000-barrel per day output increase in October, as crude prices have hit their lowest in nine months. The group is holding back 5.86 million barrels per day of output, around 5.7% of global demand, to support prices amid uncertain demand and rising supply from outside the group. Libyan oil exports remain largely halted due to a political standoff, though some tankers are loading from storage. Meanwhile, Venezuela's August oil exports reached their highest level in four years, driven by increased shipments to China, the U.S., and Europe.
Technically, the crude oil market is under fresh selling pressure, with open interest rising by 2.97% to 21,179 contracts. Crude oil prices have immediate support at ₹5,752, and a break below this could see prices testing ₹5,695. On the upside, resistance is seen at ₹5,914, and a move above this level could push prices toward ₹6,019.