On Friday crude oil futures declined to Rs 3,189 per barrel as participants increased their short positions. Oil prices fell on worries about the demand outlook and a strengthening dollar. Crude oil continues to trade in a narrow range amid lack of fresh cues and squaring of positions near contract expiration.
In the futures market, crude oil for September delivery touched an intraday high of Rs 3,229 and a low of Rs 3,186 per barrel on the Multi-Commodity Exchange (MCX). So far in the current series, black gold has touched a low of Rs 2,945 and a high of Rs 3,285.
Crude oil futures for September delivery slipped Rs 22, or 0.69 percent, to Rs 3,189 per barrel at 15:10 hours IST on a business turnover of 2,945 lots. The same for October delivery fell Rs 20, or 0.62 percent, to Rs 3,225 per barrel on a business volume of seven lots. The value of September and October’s contracts traded so far is Rs 505.89 crore and Rs 0.19 crore, respectively.
“Crude oil continues to trade in a narrow range amid lack of clear cues. Demand concerns amid increasing challenges to the global economy is capping the gains, whereas continuing strength in the US and global equity markets are putting a floor below prices.
OPEC expressed concerns about slower demand recovery amid prolonged pandemic, but also sees rebalancing in the market. We expect the range move in crude to continue amid mixed cues,” Ravindra Rao, VP- Head Commodity Research at Kotak Securities.
Tapan Patel- Senior Analyst (Commodities), HDFC Securities, expects oil prices to trade sideways to down for the day with support at $41 and resistance at $43.50 “MCX September Crude Oil futures has support at Rs 3,150 and resistance at Rs 3,270.”