Crude oil futures climbed to Rs 4,357 per barrel on March 26, recovering after the sharp selloff yesterday as experts suggested it could take weeks to dislodge the container ship Ever Given blocking Suez Canal.
The energy commodity extended gains after a gap-up start in the afternoon session tracking strong global cues.
The black gold has been trading higher than 5, 50, 100 and 200 days' moving averages but lower than the 20-day moving average on the daily chart. The momentum indicator Relative Strength Index (RSI) is at 45.91 indicating weak momentum in prices.
Tapan Patel- Senior Analyst (Commodities), HDFC Securities said, “Crude oil prices rebounded from Thursday’s slump on supply concerns as transport blockage at Suez Canal may take weeks. Crude oil prices have witnessed zigzagged move in the last three trading sessions as traders swing over demand worries and supply concerns. We expect crude oil prices to trade up for the day as speculation of supply crunch may overpower pandemic concerns.”
“Crude oil prices are expected to trade up for the day with resistance at $62 and support at $59 per barrel. MCX Crude oil April has support at Rs 4,270, resistance at Rs 4,450 said Patel.
MCX iCOMDEX Crude Oil Index soared 114.64 points, or 2.40 percent, at 4,896.68 at 16:18.
In the futures market, crude oil for April delivery touched an intraday high of Rs 4,376 and an intraday low of Rs 4,284 per barrel on MCX. So far in the current series, black gold has touched a low of Rs 4,102 and a high of Rs 4,985.
Crude oil delivery for April jumped Rs 102, or 2.40 percent, to Rs 4,357 per barrel at 16:20 hours IST with a business turnover of 5,172 lots.
Crude oil delivery for May edged higher Rs 96, or 2.25 percent to Rs 4,370 per barrel with a business volume of 198 lots.
The value of April and May’s contracts traded so far is Rs 1,301.80 crore and Rs 15.35 crore, respectively.
Crude oil may witness volatile trade amid choppiness in financial markets and as market players position for next week’s OPEC meeting however the general bias may be on the downside on rising coronavirus cases, rise in US crude stocks and as supply issues relating to Suez Canal are seen temporary, said Kotak Securities.
West Texas Intermediate crude was up 2.53 percent to $60.04 per barrel, while Brent crude, the London-based international benchmark surged 2.29 percent to $63.37 per barrel.
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