On Thursday crude oil prices rose to Rs 4,099 per barrel as participants increased their long position as seen by the open interest. Crude prices surged as US inventories hit their lowest levels and OPEC+ alliance stuck to reduced output policy.
The US Energy Information Administration (EIA) reported that the country’s crude inventories fell by 0.99 million barrels for the week ended January 29 against market expectation of 0.4 million barrels rise.
“Crude oil prices have surged to near one-year high, as OPEC + nations were able to maintain their commitments with regards to crude output and the prices are supported by improving demand from Asian countries as the vaccination drive starts.
India Crude imports fell by approx 15-20 percent till date due to the pandemic. However, the import numbers are improving as the economy reopened with eased travel restrictions,” said Sunilkumar Katke, Head – Commodity and Currency, Axis Securities.
Katke added MCX crude was trading at Rs 4,090 a barrel and was expected to improve to Rs 4,400 in the next couple of months. West Texas Intermediate (WTI) crude was up 0.65 percent to $56.05 per barrel, while Brent crude, the London-based international benchmark was slightly up 0.10 percent to $58.75 per barrel.
MCX iCOMDEX Crude Oil Index inched higher 29.54 points, or 0.64 percent, at 4,654.36 at 1537 hours. In the futures market, crude oil for February delivery touched an intraday high of Rs 4,106 and an intraday low of Rs 4,083 per barrel on MCX. So far in the current series, crude has touched a low of Rs 3,486 and a high of Rs 4,112.
Crude oil delivery for February rose Rs 29, or 0.71 percent, to Rs 4,099 per barrel at 1539 hours, with a business turnover of 7,000 lots. Delivery for March jumped Rs 23, or 0.56 percent to Rs 4,107, with a business volume of 161 lots. The value of February and March’scontracts traded so far is Rs 923.92 crore and Rs 3.32 crore, respectively.