Crude Oil News: Crude rose to a three-week high, gains appear to be limited

As per the crude oil news, from the beginning of the week, crude oil was on a speculative rise. Prices rose more than four percent and are hovering at three-week highs as worries about temporary disruptions in the Middle East weighed on the atmosphere.

However, prices retreated from yesterday’s highs as US crude inventories overshadowed concerns about supply disruptions in the Middle East. U.S. crude inventories rose by 2.9 million barrels last week, beating expectations for 2.3 million barrels, EIA data showed.

The EIA also reported that US oil production jumped to a record 13.3 million barrels per day last week from an earlier all-time high of 13.2 million barrels per day. Meanwhile, investors continued to monitor developments in the Red Sea, where Houthi attacks on shipping have disrupted global trade. With nearly 12 percent of world trade passing through the Red Sea, more than 100 container ships take the longer African route to avoid potential attacks.

However, oil prices are on track for their first annual decline since 2020, driven by record US production and scepticism about OPEC and the ability to tighten the market next quarter.

US daily production hit a record high of 13.3 million barrels last week,  the Energy Information Administration said.

Technical Outlook – Crude Oil News:

Crude oil recovered sharply from  5658 (13/12/2023) and rose to 6289 yesterday. It was now trading up 0.68 percent at 6,216.

 On the above chart, prices are trading above the immediate resistance at 6205, which coincides with the 23.6% Fibonacci Retracement, which creates the possibility of an increase to the next resistance at 6280-6400.00. 

 On the downside, major support is seen at 6010 and a break below the prices pulls to 5900-5845.00.

Commodity Samachar
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