In the futures market, crude oil for September delivery touched an intraday high of Rs 2,769 and a low of Rs 2,713 per barrel on the MCX
Crude oil futures inched lower to Rs 2,727 per barrel on September 14 as participants increased their short positions on concerns over falling demand due to slow economic recovery and excess supply.
Crude oil slumped 6.1 percent last week to June lows led by sell-off in the US and global equity markets.
Tapan Patel- Senior Analyst (Commodities), HDFC Securities said, "The downside in crude oil prices continued on lower demand concerns and fear of a supply overhang. Traders signed up for supertankers for long charters."
“Supporting crude price is gains in the equity market, increased storm activity in the Gulf of Mexico and decline in US crude oil rig count. Overall sentiment remains weak unless we see a sustained recovery in the US equity market," said Ravindra Rao, VP-Head Commodity Research at Kotak Securities.
In the futures market, crude oil for September delivery touched an intraday high of Rs 2,769 and a low of Rs 2,713 per barrel on the Multi-Commodity Exchange (MCX). So far in the current series, black gold has touched a low of Rs 2,672 and a high of Rs 3,285.
Crude oil futures for September delivery slipped Rs 16, or 0.58 percent, to Rs 2,727 per barrel at 15:36 hours IST on a business turnover of 4,414 lots. The same for October delivery declined Rs 22, or 0.79 percent, to Rs 2,764 per barrel on a business volume of 262 lots.
The value of September and October’s contracts traded so far is Rs 604.87 crore and Rs 5.32 crore, respectively.
Patel expects oil prices to trade sideways to down for the day with support and resistance for MCX September Crude Oil futures at Rs 2,670 and Rs 2,790, respectively.
West Texas Intermediate crude was down 0.75 percent at $37.05 per barrel, while Brent crude, the London-based international benchmark, slipped 0.70 percent to $39.55 per barrel.For all commodities related news, click here