Crude oil futures gain 0.47% to Rs 2,983 a barrel in afternoon session

Crude oil futures rose to Rs 2,983 per barrel on September 28 as participants increased their short position as seen by the open interest. Crude oil prices pared early losses and traded green in the afternoon.

The number of rigs drilling crude oil in the US jumped by 17 to 217 last week.

Tapan Patel- Senior Analyst (Commodities), HDFC Securities, said, “Crude oil prices traded lower on weaker demand concerns amid a surge in virus infections in Europe, the US and the UK. The return of oil supply from Libya and Iraq may add pressure to the prices in the coming months.”

“NYMEX crude trades marginally lower near $40/bbl as range-bound move continues. Support from a decline in US crude oil stocks, OPEC’s willingness to take more measures and strike concerns relating to Norway is countered by a rise in US crude oil rig count and demand concerns amid rising virus cases globally and mixed economic data from major economies. Mixed factors may keep crude in a range but bias may be on the upside owing to supply risks,” said Ravindra Rao, VP-Head Commodity Research, Kotak Securities.