Crude oil futures climbed to Rs 3,105 per barrel on July 29 as participants increased their long position as seen by the open interest. Crude oil gained on a drawdown in the US weekly crude stock, weakness in the dollar and expectations of additional stimulus measures.
The American Petroleum Insitute (API) reported that US crude inventories declined by 6.8 million barrels for the week ended July 24.
Tapan Patel- Senior Analyst (Commodities), HDFC Securities, said crude prices recovered after falling by more than 1 percent on July 28. Crude traded up after US API data showed that weekly oil stockpiles fell by 6.8 mb against an expected hike of 0.35 mb. Demand concerns amid slower economic growth and ample supplies limited the upside to $43.
“NYMEX crude continues to trade in a narrow range near $41 per barrel. Weak demand expectations have been countered by a weak US dollar and stimulus measures from central bankers. Focus today will be on EIA Crude inventories data after API noted a 6.83 million barrels decline in the US crude oil stocks. The Fed’s monetary policy will also be closely watched by traders," said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.
In the futures market, crude for August delivery touched an intraday high of Rs 3,110 and an intraday low of Rs 3,068 on MCX. So far, in the current series, crude has touched a low of Rs 2,520 and a high of Rs 3,182.
Crude delivery for August gained Rs 26, or 0.84 percent, to Rs 3,103 per barrel at 1502 hours IST with a business turnover of 4,233 lots.
Crude delivery for September edged higher by Rs 34, or 1.10 percent, to Rs 3,129 per barrel with a business volume of 66 lots.
The value of August and September's contracts traded, so far, is Rs 639.33 crore and Rs 2.36 crore, respectively.
Patel expects oil to trade sideways to up for the day, with support at $40 and resistance at $43. MCX Crude oil August futures have support at Rs 3,040 with resistance at Rs 3,180.
West Texas Intermediate crude gained 1 percent at $41.45 per barrel, while Brent crude, the London-based international benchmark, was up 1.17 percent to $44.12 per barrel.For all commodities related news, click here