Crude oil yesterday settled down by -4.88% at 4465 after official data showed a sustained rise in U.S. crude and fuel inventories, while the ever-present pandemic clouded the demand outlook. U.S. crude oil, gasoline and distillate stockpiles all rose last week, as refiners boosted output with more facilities coming back online following February’s devastating storms in Texas.
Crude Oil Down
Crude inventories rose by 2.4 million barrels in the week to March 12, the U.S. Energy Information Administration said, compared with expectations for an increase of 3 million barrels. An extended surge in oil prices is unlikely as the world rebounds from the pandemic given ample supply but changes are seen in demand and gasoline may have peaked, the International Energy Agency (IEA) said. “Oil’s sharp rally to near $70 a barrel has spurred talk of a new supercycle and a looming supply shortfall. Our data and analysis suggest otherwise,” the IEA said in its monthly report.
Gasoline demand may never recover to pre-pandemic levels, the International Energy Agency (IEA) said, with increased use in developing countries offset by rising fuel efficiency and a switch to electric vehicles in wealthy nations. In last year’s five-year outlook before the COVID-19 pandemic’s full force was felt in Western countries, the IEA said that gasoline demand was approaching a plateau and kept its demand outlook figure steady from 2024 to 2025.
Technically market is under fresh selling as the market has witnessed a gain in open interest by 163.8% to settled at 2266 while prices down -229 rupees, now Crude oil is getting support at 4361 and below same could see a test of 4258 levels, and resistance is now likely to be seen at 4648, a move above could see prices testing 4832.