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Last Updated : Oct 15, 2020 06:06 PM IST | Source: Moneycontrol.com

Crude oil futures plummet over 2% to Rs 2,938 per barrel on lockdown fears

In the futures market, crude oil for October delivery touched an intraday high of Rs 3,016 and a low of Rs 2,929 per barrel on the MCX

Crude oil futures edged lower to Rs 2,938 per barrel on October 15 as participants increased their short positions in afternoon trade on fading US stimulus hopes, demand growth worries and surge in COVID-19 cases, prompting fears of another lockdown in the European Union.

The American Petroleum Institute (API) reported that US crude inventories decreased by 5.4 million barrels against analyst expectation of 2.8 million barrels decline for the week ended October 9.

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Russian Energy Minister Alexander Novak said leading oil producers will start easing output curbs as planned in January despite a spike in coronavirus cases.

West Texas Intermediate crude slid 2.51 percent to $40.01 per barrel, while Brent crude, the London-based international benchmark, fell 2.35 percent to $42.30 per barrel.

MCX iCOMDEX Crude Oil Index was down 78 points, or 2.22 percent, at 3,436.03 at 15:45 hours.

“Market players are now positioning for OPEC’s review meeting. The general bias in crude is still weak amid increasing challenges to the demand outlook,” said Ravindra Rao, VP-Head Commodity Research at Kotak Securities.

In the futures market, crude oil for October delivery touched an intraday high of Rs 3,016 and a low of Rs 2,929 per barrel on the Multi-Commodity Exchange (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 futures for October delivery slipped Rs 66, or 2.2 percent, to Rs 2,938 per barrel at 15:47 hours IST on a business turnover of 2,852 lots. The same for November declined Rs 68, or 2.24 percent, to Rs 2,965 per barrel on a business volume of 289 lots.

The value of October and November’s contracts traded so far is Rs 786.79 crore and Rs 14.85 crore, respectively.

Tapan Patel, Senior Analyst (Commodities), HDFC Securities, expects crude oil prices to trade sideways to up with support at $39 and resistance at $42. "MCX Crude oil October has support at Rs 2,920 and resistance at Rs 3,040."

However, Geojit Financial Services expects the commodity to continue to trade choppy to mild negative. "See resistance and support for MCX October futures at Rs 3,070 and Rs 2,880.”

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First Published on Oct 15, 2020 04:34 pm
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