Crude oil futures slipped to Rs 1,141 per barrel on April 27 as participants increased their short positions. Oil prices declined as the US storage is near record highs and production cuts may not happen at the required pace to offset the supply glut caused by the novel coronavirus, or COVID-19, pandemic.
Crude oil prices across the globe are in a downtrend on higher supply pressures due to swelling inventories. Demand is at multi-year lows due to a stalled world economy.
Prices continued to head lower with the Nymex WTI Crude oil down nearly 13 percent to $14.70 on April 27. ICE Brent oil also witnessed selling with prices falling by more than 4 percent.
May crude oil futures on the MCX shed 16 percent by the noon trade, said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
In the futures market, crude oil for May delivery touched an intraday high of Rs 1,296 and an intraday low of Rs 1,115 per barrel on MCX. So far in the current series, black gold has touched a low of Rs 848 and a high of Rs 3,905.
Crude oil delivery for May slipped 209, or 15.48 percent, to Rs 1,141 per barrel at 14:35 hours IST. The same for June delivery was down Rs 165, or 9.67 percent, to Rs 1,542 per barrel.
The value of May and June contracts traded so far is Rs 1,019.65 crore and Rs 66.88 crore, respectively.
Global trading hubs are running out of storage options which may continue the selling pressure on crude oil prices. MCX May crude oil futures may seek support near Rs 900 with resistance at Rs 1,400 per barrel, Patel said.
West Texas Intermediate crude slipped 13.87 percent at $14.59 per barrel, while Brent Crude, the London-based international benchmark, declined 3.51 percent to $23.94 per barrel.For All Commodities Related News - Click Here