During a meeting at OPEC’s headquarters in Vienna on Wednesday, Iran gave a clear signal that it could provide a small increase in the group’s output of the crude oil supply from June 22 onwards. Iran is a very large supplier of this commodity within the producer cartel of the Organization of the Petroleum Exporting Countries (OPEC) signaled this on Wednesday which resulted in the downfall of crude oil prices in the market.
Though oil prices continuously dipped on Thursday after the indication of increasing the group output’s supply by the major supplier of this commodity, the prices were further intercepted from falling by record refinery runs in the United States. A large decline in US crude inventories can be further taken as a sign of strong fuel demand in the world’s biggest economy.
“Amid strong consumption, commercial US crude inventories dropped by 5.9 million barrels in the week to June 15, to 426.53 million barrels “, the EIA said. US crude oil production remained flat at a record of 10.9 million bpd.
A news says that Crude oil can face resistance near Rs 4,500 and can take support near Rs 4,420 in MCX whereas Natural gas can trade with sideways bias as it can face resistance near Rs 204 , says SMC Global Securities.