Crude oil futures declined to Rs 3,000 per barrel on June 24 as participants increased their short positions. Prices slipped after API data showed a bigger than expected build-up.
The American Petroleum Institute (API) reported that US crude inventories rose by 1.7 million barrels for the week-ended June 19.
Tapan Patel, Senior Analyst (Commodities), HDFC Securities, said crude oil prices pared precious gains on expectations of another build-up in weekly stockpiles. "The growing virus cases also pressured crude oil prices to trade lower on demand growth concerns."
In the futures market, crude oil for July delivery touched an intraday high of Rs 3,077 and an intraday low of Rs 2,993 per barrel on the Multi Commodity Exchange (MCX). So far in the current series, black gold has touched a low of Rs 1,655 and a high of Rs 3,108.
Crude oil futures for July delivery eased Rs 59, or 1.92 percent, to Rs 3,007 per barrel at 15:01 hours IST on a business turnover of 3,829 lots.
The same for August delivery slipped Rs 59, or 1.91 percent, to Rs 3,035 per barrel on a business volume of 78 lots.
The value of July and August contracts traded so far is Rs 1,106.08 crore and Rs 3.31 crore, respectively.
Patel expects oil prices to trade sideways to down for the day with support at $38 and resistance at $40. "MCX July Crude Oil futures has support at Rs 2,950 with resistance at Rs 3,080.7."
West Texas Intermediate crude slipped 1.61 percent at $39.72 per barrel, while Brent crude, the London-based international benchmark, was down 1.22 percent to $42.11 per barrel.
For all commodities related news, click here
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
