Crude oil futures were steady at Rs 2,693 per barrel on October 30 as participants increased their long positions. Prices traded flat in the international market on a weaker dollar and supply disruption caused by hurricane Zeta.
According to US Bureau of Safety and Environmental Enforcement, around 84.8 percent of the Gulf of Mexico's crude production was shut as of October 29 as against 66.6 percent a day earlier due to storm activity.
Black gold fell as low as $34.92 barrel intraday trade on October 29, the lowest since June, as renewed lockdown measures begin to bite on demand concerns across Europe.
In other economic news, US GDP rose 33.1 percent in Q3 2020 after a 31.4 percent contraction in the previous quarter. European Central Bank (ECB) indicated that it could expand its support for the bloc’s economy amid surging COVID cases.
West Texas Intermediate crude was down 0.36 percent at $36.04 per barrel, while Brent crude, the London-based international benchmark, slid 0.39 percent to $38.11 per barrel.
MCX iCOMDEX Crude Oil Index declined 17.39 points, or 0.56 percent, to 3,108.98 at 16:23 hours.
According to Ravindra Rao, VP-Head Commodity Research at Kotak Securities, weighing on crude oil price are demand concerns amid rising coronavirus cases and improving supply from the US and OPEC. He feels the overall outlook on the commodity is still weak owing to oversupply concerns and expects it to trade volatile ahead of next week's US elections.
In the futures market, crude oil for November delivery touched an intraday high of Rs 2,729 and a low of Rs 2,641 per barrel on the Multi-Commodity Exchange (MCX). So far in the current series, black gold has touched a low of Rs 2,606 and a high of Rs 3,127.
Crude oil futures for November delivery slipped Rs 5, or 0.19 percent, to Rs 2,693 per barrel at 16:25 hours IST on a business turnover of 3,434 lots. The same for December delivery rose Rs 4, or 0.15 percent, to Rs 2,738 per barrel on a business volume of 132 lots.
The value of November and December’s contracts traded so far is Rs 1,477.36 crore and Rs 2.95 crore, respectively.
Tapan Patel, Senior Analyst (Commodities), HDFC Securities, expects crude oil prices to trade sideways to down with support at $35 and resistance at $38. "MCX November Crude Oil has support at Rs 2,640 and resistance at Rs 2,780."For all commodities related news, click here