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CRUDEOIL

Observations

Crudeoil trading range for the day is 6279-6615.

Crude oil dropped amid concerns over demand and increasing US stockpiles.

US crude inventories rose, with Cushing, Oklahoma's storage hub reaching its highest level since July, the EIA report showed.

Russia said that it exceeded its OPEC+ production quota in April for “technical reasons” and will propose a plan to compensate for the error.

All eyes now turn to the upcoming OPEC+ meeting scheduled for June 1, where key oil producers are anticipated to prolong output cuts.

SELL CRUDEOIL JUN @ 6420 SL 6500 TGT 6320-6220. MCX

NATURALGAS

Observations

Naturalgas trading range for the day is 205.7-252.5.

Natural gas dropped due to increased daily output and a storage build.

US utilities added 78 billion cubic feet (bcf) of gas into storage last week, compared with market expectations of an 84 bcf increase.

Output has increased by 0.9 bcfd since hitting a 15-week low on May 1, indicating that some drillers started producing more gas.

Meanwhile, gas flows to major US LNG export plants have risen so far in May with the return of Freeport LNG plant in Texas.

SELL NATURALGAS MAY @ 226 SL 230 TGT 220-216. MCX