Crude oil futures edged lower to Rs 3,054 per barrel on July 30 as participants increased their short positions. Prices slipped on surging coronavirus cases in the US and across the globe despite a massive drawdown in US crude inventories.
The US Energy Information Agency reported that US crude inventories declined by 10.6 million barrels to 526 million barrels for the week-ended July 24.
“Crude oil may continue to trade lower amid mixed factors. However, we may see the correction deepening if economic data disappoints or if there is a fresh escalation in US-China tensions,” said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.
Tapan Patel- Senior Analyst (Commodities), HDFC Securities, expects oil prices to trade sideways to down for the day with support at $39 and resistance at $43. "MCX August Crude oil futures has support at Rs 3,020 and resistance at Rs 3,120."
In the futures market, crude oil for August delivery touched an intraday high of Rs 3,100 and a low of Rs 3,041 per barrel on the Multi-Commodity Exchange (MCX). So far in the current series, black gold has touched a low of Rs 2,520 and a high of Rs 3,182.
Crude oil futures for August delivery slipped Rs 36, or 1.16 percent, to Rs 3,056 per barrel at 15:28 hours IST on a business turnover of 5,582 lots. The same for September delivery was down Rs 34, or 1.09 percent, to Rs 3,088 per barrel on a business volume of 68 lots.
The value of August and September's contracts traded so far is Rs 784.53 crore and Rs 2.94 crore, respectively.
West Texas Intermediate crude slipped 1.5 percent at $40.65 per barrel, while Brent crude, the London-based international benchmark, was down 1.27 percent to $43.53 per barrel.