Crude oil futures dip 0.62% on long unwinding, Brent trades below $39 a barrel

Crude oil futures declined to Rs 2,761 per barrel on June 12 as participants unwound their long positions. Prices slumped 8 percent on June 11 on fears of a surge in US coronavirus cases this week and the prospect of a second wave of the outbreak.

Total US virus cases surpassed 2 million with jumps in cases in Florida, Texas and Arizona. The rise in virus dampened investment sentiment with fear of another partial lockdown.

In the futures market, crude oil for June delivery touched an intraday high of Rs 2,765 and an intraday low of Rs 2,652 per barrel on the Multi-Commodity Exchange (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 20, or 0.72 percent, to Rs 2,762 per barrel at 14:58 hours IST on a business turnover of 3,781 lots.

The same for July fell Rs 24, or 0.85 percent, to Rs 2,794 per barrel on a business volume of 363 lots.

The value of June and July contracts traded so far is Rs 1,705.19 crore and Rs 18.49 crore, respectively.

Tapan Patel, Senior Analyst (Commodities), HDFC Securities, expects oil prices to trade down for the day with support at $34 and resistance at $38. "MCX June Crude Oil futures has support at Rs 2,630 and resistance at Rs 2,780."

West Texas Intermediate crude gained 0.83 percent at $36.64 per barrel, while Brent crude, the London-based international benchmark, was up 0.86 percent to $38.88 per barrel.

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