Crude oil prices remained unchanged, settling at 7192 per barrel, amid reports suggesting the U.S. may ease sanctions on Venezuela. This development, in addition to concerns over the Israel-Hamas conflict potentially expanding, influenced oil market dynamics. Libya announced plans to increase its oil production to two million barrels per day by the end of the decade, which could add to global supply.
In contrast, U.S. oil output from major shale-producing regions is expected to decline for the third consecutive month in November, reaching its lowest level since May 2023, according to the U.S. Energy Information Administration (EIA). U.S. oil production is forecasted to fall to 9.553 million barrels per day in November, down from 9.604 million in October. Despite the expected decline in U.S. shale oil production, the country's overall crude oil production reached a record 13.2 million barrels per day, surpassing the previous peak set in 2020. However, the growth in U.S. oil output has been gradual in recent years as companies have prioritized returning cash to shareholders through dividends and buybacks over increasing production.
From a technical standpoint, the market is currently experiencing long liquidation, with open interest dropping by -3.4% to settle at 4,000. Key support levels for crude oil are at 7040, with a potential test of 6888 if it falls below this level. Resistance is likely to be observed at 7436, and a breakout could push prices to 7680.
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