DBT Bureau
Pune, 24 March 2026
Energy markets faced sharp selling pressure as crude oil and natural gas prices declined amid easing Middle East tensions and improving supply outlook. According to Kedia Advisory daily report below are the the key support and resistance levels for crude oil and natural gas.
Crude oil prices saw a sharp correction, settling lower by 9.86% at ₹8345 after easing geopolitical tensions in the Middle East. The decline followed U.S. President Donald Trump’s decision to pause planned strikes on Iranian energy infrastructure for five days, citing constructive discussions with Iran. This move helped calm immediate fears of supply disruption, especially around the Strait of Hormuz, a critical global oil transit route. Markets quickly reacted as the perceived risk premium faded, shifting focus toward the progress of ongoing diplomatic efforts. On the supply side, developments remained mixed. Libya’s El Feel oilfield remains shut due to pipeline disruptions, while the International Energy Agency signaled readiness to release additional reserves if required, after already announcing a record 400 million barrel release. Meanwhile, U.S. crude inventories rose sharply by 6.16 million barrels, marking the fourth consecutive weekly increase, indicating ample supply. However, declines in gasoline and distillate stocks pointed to steady demand. Russian output dipped marginally, while Kazakhstan reported a recovery in production. Technically, the market is witnessing long liquidation, with open interest dropping 15.33% to 14,034. Prices are now finding support at ₹7738, with a break below potentially testing ₹7131. On the upside, resistance is seen at ₹9286, and a move above this level could push prices toward ₹10227.
Natural gas prices came under sharp pressure, falling 5.35% to settle at ₹272.7, as easing geopolitical tensions and softer demand outlook weighed on sentiment. The decline followed U.S. President Donald Trump’s decision to delay military action against Iranian targets, which cooled global energy prices and reduced immediate supply concerns. At the same time, forecasts for milder weather in the U.S. over the next couple of weeks have lowered expectations for heating demand. On the supply side, production remains strong. Output in the U.S. Lower 48 states has averaged 109.8 bcfd so far in March, up from 109.2 bcfd in February and not far from the record 110.6 bcfd seen in December 2025. Unseasonably mild weather has also allowed injections into storage, with the EIA reporting a 35 bcf build—an early sign that the winter withdrawal season is winding down. Demand is expected to edge up slightly next week, but overall projections remain softer than earlier estimates. Looking ahead, the EIA continues to project rising production through 2027, even as domestic consumption is expected to ease slightly in 2026. LNG exports, however, are set to grow steadily. Technically, the market is witnessing long liquidation, with open interest dropping sharply by 35.12%. Immediate support is seen at ₹263.7, with further downside toward ₹254.6, while resistance is placed at ₹289.2 and then ₹305.6.
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