In the futures market, crude oil for June delivery touched an intraday high of Rs 2,878 and an intraday low of Rs 2,716 per barrel on MCX.
Crude oil futures rose to Rs 2,768 per barrel on June 3 as participants increased their long positions. Crude oil prices gained on expectation that OPEC+ producer head toward a consensus on extending output curb and hopes of further government stimulus to boost demand.
The American Petroleum Insitute (API) reported that US crude inventories fell by 483,000 barrels for the week ended May 29.
"Crude oil prices traded higher on growing prospects of extension of OPEC plus output cut," said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
The demand recovery from China also pushed oil prices higher with reports showing China achieving 90 percent oil demand recovery.
OPEC plus nations may hold meeting in coming week by 8-9 June to discuss and review output cuts. Saudia Arabia has already proposed extension of output cuts till the end of the year provided Russia agrees to it.
A marginal decline in US crude stocks is already factored in and if EIA reports an increase in stocks or a smaller decline, we may see crude price correcting from highs. Apart from stock flows, focus will also be on US crude production and refining activity. Crude production is already at July 2019 lows and further decline is expected, said Ravindra Rao, VP-Head Commodity Research at Kotak Securities.
In the futures market, crude oil for June delivery touched an intraday high of Rs 2,878 and an intraday low of Rs 2,716 per barrel on MCX. So far in the current series, black gold has touched a low of Rs 1,361 and a high of Rs 4,415.
Crude oil delivery for June increased Rs 22, or 0.8 percent, to Rs 2,768 per barrel at 17:54 hours IST with a business turnover of 5,446 lots.
Crude oil delivery for July gained Rs 24, or 0.86 percent, to Rs 2,810 per barrel with a business volume of 246 lots.
The value of June and July contracts traded so far is Rs 1,872.51 crore and Rs 25.17 crore, respectively.
MCX Crude oil is expected to trade positively with support at Rs 2,715-2,670 whereas resistance is at Rs 2,825-2,865, according to Motilal Oswal. The broking firm advised its clients to buy on dips for the day.
West Texas Intermediate crude slipped 0.24 percent at $36.72 per barrel, while Brent crude, the London-based international benchmark was down 0.81 percent to $39.25 per barrel.For All Commodities Related News - Click Here