Crude oil futures slipped to Rs 2,454 per barrel on May 29 as participants increased their short positions. Crude oil was weighed down by demand concerns as global economies reel under the negative impact of the coronavirus outbreak.
US Q2 GDP estimate was further revised down to minus 5 percent from earlier minus 4.8 percent.
MCX Crude oil prices have gained 86.61 percent so far in May.
The US Energy Information Administration (EIA) reported that US crude inventories jumped by 7.9 million barrels for the week ended May 22 as imports from Saudi Arabia surged.
Tapan Patel, Senior Analyst (Commodities), HDFC Securities said Crude oil shed the gains made on Thursday night and decline on Friday on demand growth concerns from world's top oil consumers. The traders and investors remained cautious on heightened tensions between the US and China fearing more US sanctions on China.
The US President Donald Trump is expected to give a response to China's National Security Law in the press conference later on Friday. China has warned of counter retaliation on any measures from the US.
Earlier Crude oil prices witnessed some recovery after Saudi Arabia signalled that OPEC plus nations may consider extending output cuts beyond June is Russia agrees.
In the futures market, crude oil for June delivery touched an intraday high of Rs 2,530 and an intraday low of Rs 2,450 per barrel on MCX. So far in the current series, black gold has touched a low of Rs 1,361 and a high of Rs 4,415.
Crude oil delivery for June slipped Rs 128, or 4.96 percent, to Rs 2,454 per barrel at 15:02 hours IST with a business turnover of 4,511 lots.
Crude oil delivery for July was down Rs 123, or 4.68 percent, to Rs 2,507 per barrel with a business volume of 263 lots.
The value of June and July contracts traded so far is Rs 1,095.44 crore and Rs 5.92 crore, respectively.
Patel expects oil prices to trade sideways to down for the day with support at $30 and resistance at $34. MCX Crude oil June futures has support at Rs 2,175 with resistance at Rs 2,510.
West Texas Intermediate crude slipped 3.11 percent at $32.66 per barrel, while Brent crude, the London-based international benchmark was down 2.50 percent to $35.13 per barrel.