Crude oil futures declined to Rs 3,866 per barrel on January 15 following a selloff in equities on weak US employment numbers, surging COVID cases in Europe, lockdown in China and increased tension between the US and China.
The crude oil price had jumped 1.2 percent yesterday on the NYMEX.
In its monthly report, OPEC indicated it is on track with its objective to deplete the world’s bloated crude inventories.
“NYMEX crude trades lower by more than 1.25 percent giving away the early session gains. Weighing on price is rising virus cases, disappointing US economic data and uncertain demand outlook. While crude is still holding near February 2020 highs, the mixed factor has brought a halt to gains which have increased possibility of a correction,” said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.
West Texas Intermediate crude was down 1.31 percent to $52.87 per barrel, while Brent crude, the London-based international benchmark dropped 1.60 percent to $55.52 per barrel.
MCX iCOMDEX Crude Oil Index inched lower 38.73 points, or 0.87 percent, at 4,407.30 at 15:42.
In the futures market, crude oil for January delivery touched an intraday high of Rs 3,918 and an intraday low of Rs 3,858 per barrel on MCX. So far in the current series, black gold has touched a low of Rs 3,130 and a high of Rs 3,976.
Crude oil delivery for January slipped Rs 33, or 0.85 percent, to Rs 3,866 per barrel at 15:43 hours IST with a business turnover of 2,351 lots.
Crude oil delivery for February slides Rs 35, or 0.90 percent, to Rs 3,873 per barrel with a business volume of 127 lots.
The value of January and February’s contracts traded so far is Rs 287.07 crore and Rs 5.65 crore, respectively.
Tapan Patel- Senior Analyst (Commodities), HDFC Securities
Crude oil prices are fluctuating near $53 over strong Chinese import data and weakness in the dollar. The upside remained capped over pandemic fears on rising virus cases and lockdown in China. Crude oil prices traded under pressure with a fall in equity indices on concerns over fuel demand recovery.
We expect crude oil prices to trade sideways to down with support at $52 and resistance at $54. MCX Crude oil January has support at Rs 3,820, resistance at Rs 3,940.
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