Crude oil futures trade firm at Rs 3,014 per barrel on October 23 as participants increased long positions seen by the open interest. Crude oil price pared morning losses and trade higher in the afternoon session.
Russian President Vladimir Putin indicated that he would be prepared to extend output curb in the face of the coronavirus pandemic.
However, weighing on the price is the rising Libyan oil exports accelerating into October as loading restarts after easing of a blockade by Eastern forces.
The crude oil is headed for a slight weekly decline as fresh optimism around the US stimulus was overshadowed by the threat of surging coronavirus cases to energy demand in Europe and the US.
West Texas Intermediate crude was up 0.54 percent quoting at $40.86 per barrel, while Brent crude, the London-based international benchmark rose 0.64 percent to $42.73 per barrel.
MCX iCOMDEX Crude Oil Index was up 18.54 points, or 0.53 percent, at 3,492.54 at 15:58.
“NYMEX crude trades moderately higher near $40.6/bbl amid Russia’s support for extended production cuts, upbeat US economic data and decline in US crude stocks. Weighing on price is rising virus cases, disappointing European data and rising Libyan output. Mixed factors may keep crude within recent trading range but sell on rise is recommended amid weakening demand outlook and improving supply,” said Ravindra Rao, VP-Head Commodity Research at Kotak Securities.
In the futures market, crude oil for November delivery touched an intraday high of Rs 3,016 and an intraday low of Rs 2,971 per barrel on MCX. So far in the current series, black gold has touched a low of Rs 2,798 and a high of Rs 3,127.
Crude oil delivery for November gained 16, or 0.53 percent, to Rs 3,014 per barrel at 16:00 hours IST with a business turnover of 3,106 lots.
Crude oil delivery for December trade flat at Rs 3,052 per barrel with a business volume of 60 lots.
The value of November and December contracts traded so far is Rs 707.81 crore and Rs 1.03 crore, respectively.
Sriram Iyer, Senior Research Analyst at Reliance Securities
International oil prices were steady but remained choppy in afternoon trade in Asia. Surging coronavirus cases in the United States and Europe raise concerns about demand while rising Libyan output kept upside capped.
However, the downside was capped after Russian President Vladimir Putin said that Moscow may not rule out extending OPEC+ oil output cuts if market conditions warranted.
Technically, NYMEX WTI Crude Oil bounced back from the 50-DMA at $39.80 levels, but found resistance close to $42.00, indicating a sideways momentum where prices could trade in a range of $39.70-$41.30 levels.
Domestic crude is trading with small cuts this Friday afternoon, tracking weak overseas prices. Technically, MCX Crude Oil November took the support of Rs 2,925 where it bounced back above Rs 3,000 levels. However, it is trading below these levels which signifies a range-bound move in the range of Rs 2,920-3,010 levels in the coming session.For all commodities-related news, click here