Crude oil edged lower and settled down by -1.74% at 4356 as growing investor concern about a slowdown in the US and other industrialised economies combined with expectations that top exporter Saudi would increase output.
Japan's core machinery orders unexpectedly fell in April, govt data showed, adding to doubts about the pace of global economic recovery as the Fed's $600 billion bond purchase program expires this month.
Saudi will raise output to 10mbpd in July, as Riyadh goes it alone to pump more outside official OPEC policy, aiming to place additional supplies among Asian buyers. Saudi also offered more crude to Asian refiners in July, evidence that it is taking steps to unilaterally increase supplies after OPEC talks collapsed last week.
But Iran's OPEC governor said an increase in crude output by the Saudis would not change market conditions so there is no need to boost production.
Now technically market is trading in the range as RSI for 18days is currently indicating 39.14, where as 50DMA is at 4666.06 and crude is trading below the same and getting support at 4310 and below could see a test of 4264 level, And resistance is now likely to be seen at 4427, a move above could see prices testing 4498.
