Crude oil futures advanced to Rs 4,763 per barrel on March 11 as participants increased their long positions as seen by the open interest. Crude oil gained on hopes of demand recovery as vaccine rollout gathers pace and US Congress approved COVID-19 relief package.
The commodity market was shut in the first half of the session on account of Mahashivratri holiday.
The US Energy Information Administration (EIA) reported that US crude oil inventories rose by 13.8 million barrels per day to 498.4 million barrels for the week ended March 5.
The black gold has been trading higher than 5, 20, 50, 100 and 200 days' moving averages on the daily chart. The momentum indicator Relative Strength Index (RSI) is at 64.91, indicating bullish momentum in prices.
Tapan Patel, Senior Analyst (Commodities), HDFC Securities said, “Crude oil prices traded higher with NYMEX WTI Crude oil prices were trading 1.61% up at $65.16 per barrel. MCX Crude Oil March Futures rose by 2.52% to Rs. 4762 per barrel.”
“Crude oil prices rallied on bullish weekly inventory data and demand recovery hopes. We expect crude oil prices to trade up with support at $64.50 and resistance at $67 per barrel. MCX Crude Oil March resistance lies at Rs 4,820 and support at Rs 4,710”, Patel added.
West Texas Intermediate crude was up 1.58 percent to $65.46 per barrel, while Brent crude, the London-based international benchmark soared 1.66 percent to $69.03 per barrel.
MCX iCOMDEX Crude Oil Index jumped 133.50 points, or 2.56 percent, at 5,390.09 at 19:26 pm.
In the futures market, crude oil for March delivery touched an intraday high of Rs 4,774 and an intraday low of Rs 4,716 per barrel on MCX. So far in the current series, black gold has touched a low of Rs 3,800 and a high of Rs 4,967.
Crude oil delivery for March climbed Rs 118, or 2.54 percent, to Rs 4,763 per barrel at 19:28 hours IST with a business turnover of 5,974 lots.
Crude oil delivery for April rose Rs 116, or 2.48 percent to Rs 4,788 per barrel with a business volume of 549 lots.
The value of March and April’s contracts traded so far is Rs 813.13 crore and Rs 25.74 crore, respectively.
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