International oil prices rose over 3% on Wednesday supported by U.S. crude stock drawdown.
Domestic crude oil and Energy Index futures ended stronger on Wednesday.
Prices also moved higher after the United States and its allies plan new sanctions on more sectors of Russia's economy, including military supply chains.
U.S. crude stockpiles fell by a bigger-than-expected 3.4 million barrels last week, cutting inventories in the U.S. to 410 million barrels, their lowest since September 2018 and indicated tight supplies.
However, demand for both distillates and gasoline fell in the latest week, which could signal that high prices are starting to put a dent in fuel consumption.
Distillate product supplied fell by 16% in the latest week, and gasoline demand was down 1.6% from the previous week. On a four-week moving average basis, distillate and gasoline demand is down 3.7% and 0.7%, respectively.
Most Active strike price in MCX Crude options of the April contract is, 8400, 8500, 8600, 8900 and 9400 for Call and 7900 and 8400 for Put.
International oil prices tumbled this early Thursday morning in Asian trade on news that U.S is weighing releasing some 1 million barrels of oil per day from strategic reserves for several months in a bid to calm soaring crude prices.
Investors will also await the conclusion of the OPEC meeting today.
Technically, if WTI May trade below $107.05 level, it could witness a bearish momentum up to the support zone at $105.35-$102.85. A trade above could push prices to the resistance zone at $109.55-$111.25.
Domestic crude oil prices could fall this Thursday morning, tracking a negative start in the overseas prices. |
