In the futures market, crude oil for October delivery touched an intraday high of Rs 2,956 and an intraday low of Rs 2,895 per barrel on MCX.
Crude oil futures jumped to Rs 2,951 per barrel on September 22 as participants increased their long position as seen by the open interest. Crude oil prices gained after a 4.4 percent drop yesterday on sharp sell-off in commodities and equities market and concerns of rising coronavirus cases globally.
Tapan Patel- Senior Analyst (Commodities), HDFC Securities said, “Crude oil prices witnessed marginal recovery on Tuesday after falling by 4 percent in the previous session. Crude oil prices may trade under pressure on demand growth concerns and resume of supply from Libya. The rising virus cases have increased fear of lockdown measures after the UK announced lockdown 21 days.”
“NYMEX crude trades 1.44 percent higher near $40.11/bbl. Although crude prices have rebounded slightly firmness in US dollar, concerns about rising virus cases, the prospect of higher supply from Libya and disappointing US economic data might cap the upside. OPEC’s willingness to take additional measures and decline in US crude stocks may support the price at lower levels. Crude may see some choppiness in the near term due to position squaring near contract expiration, but OPEC's production policy may keep prices supported”, said Ravindra Rao, VP-Head Commodity Research, Kotak Securities
In the futures market, crude oil for October delivery touched an intraday high of Rs 2,956 and an intraday low of Rs 2,895 per barrel on MCX. So far in the current series, black gold has touched a low of Rs 2,718 and a high of Rs 3,320.
Crude oil delivery for October gained Rs 63, or 2.18 percent, to Rs 2,951 per barrel at 15:44 hours IST with a business turnover of 3,679 lots.
Crude oil delivery for November declined Rs 48, or 1.59 percent, to Rs 2,975 per barrel with a business volume of 33 lots.
The value of October and November’s contracts traded so far is Rs 834.28 crore and Rs 1.87 crore, respectively.
Patel expects oil prices to trade sideways to down for the day with MCX Crude oil futures has support at Rs 2,870 with resistance at Rs 2,990.
West Texas Intermediate crude was up 1.09 percent at $39.97 per barrel, while Brent crude, the London-based international benchmark rose 1.23 percent to $41.95 per barrel.For all commodities related news, click here