Crude oil fell due to concerns about demand and clues of increased supply.
Crude oil faced a significant setback, dropping 3.58% to 62.74 per barrel, driven by multiple concerns. The demand outlook was worrisome due to weaker-than-expected Chinese exports in October, coupled with a US government report predicting a 20-year low in American gasoline demand per capita next year. This signalled a potential dip in global demand. On the supply side, US crude inventories surged by almost 12 million barrels, the largest increase since early 2023, while Russian shipments reached a four-month high
Technically, the market exhibited signs of fresh selling with increased open interest by 12.42%, settling at 12,768. Crude oil found support at 6,197 and could potentially test 6,121 levels, while resistance was expected at 6,415, with the possibility of prices testing 6,557.