In the futures market, crude oil for July delivery touched an intraday high of Rs 3,034 and an intraday low of Rs 3,004 per barrel on the MCX
Crude oil futures eased to Rs 3,025 per barrel on July 20 as participants increased their short positions on rising coronavirus cases globally after trading flat last week.
The number of COVID-19 cases around the world is closing in on 14.5 million and more than 600,000 have died, according to John Hopkins University data.
The number of rigs drilling crude oil decreased by one to 180 rigs, the lowest since 2009.
Ravindra Rao, VP- Head Commodity Research at Kotak Securities, said, "On the supply side, US crude oil production has stabilised near 11 million barrels per day while decline in rig count has slowed down. Although the rig counts are at the lowest since 2009, the pace of decline has slowed, capping the gains in oil prices."
He expects crude to continue to witness narrow trade unless it breaks out of the $39-41/bbl range. "However, the general bias may be on the downside for the day.”
Tapan Patel- Senior Analyst (Commodities), HDFC Securities, said crude oil prices traded under pressure over worries over rising virus cases. The ease in output cut quota from OPEC also pressured oil prices to trade down.
In the futures market, crude oil for July delivery touched an intraday high of Rs 3,034 and an intraday low of Rs 3,004 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 3,153.
Crude oil futures for July delivery slipped Rs 29, or 0.95 percent, to Rs 3,024 per barrel at 15:20 hours IST on a business turnover of 2,975 lots.
The same for August delivery edged lower by Rs 33, or 1.07 percent, to Rs 3,040 per barrel on a business volume of 960 lots.
The value of July and August's contracts traded so far is Rs 605.62 crore and Rs 63.95 crore, respectively.
Patel expects oil prices to trade down for the day with support at $39 and resistance at $41. "MCX August Crude Oil futures has support at Rs 2,970 with resistance at Rs 3,090."
West Texas Intermediate crude slipped 0.76 percent at $40.44 per barrel, while Brent crude, the London-based international benchmark, was down 0.70 percent to $42.84 per barrel.For all commodities related news, click here