In the futures market, crude oil for July delivery touched an intraday high of Rs 3,056 and an intraday low of Rs 3,029 per barrel on the MCX
Crude oil futures fell to Rs 3,043 per barrel on July 8 due on rising US crude inventory and worries about the jump in global coronavirus infections.
The American Petroleum Institute (API) reported that US crude inventories rose by 2.04 million barrels for the week-ended July 3.
Ravindra Rao, VP- Head Commodity Research at Kotak Securities, said crude oil may trade sideways to lower ahead of the inventory report later on July 8. "The focus will also be on developments relating to virus outbreak and US-China tensions."
Tapan Patel, Senior Analyst (Commodities), HDFC Securities, said crude oil prices traded under pressure on demand growth concerns over record virus cases. "The recent surge in COVID-19 infections has dampened the demand outlook on fears of a second wave of coronavirus infections in the US and other parts of the world. Crude oil prices also traded weak on expectations of inventory build-up after a US API report showed a rise in crude oil supplies by 2 million barrels last week."
In the futures market, crude oil for July delivery touched an intraday high of Rs 3,056 and an intraday low of Rs 3,029 per barrel on Multi-Commodity Exchange (MCX). So far in the current series, black gold has touched a low of Rs 1,655 and a high of Rs 3,153.
Crude oil futures for July delivery slipped Rs 15, or 0.49 percent, to Rs 3,048 per barrel at 15:07 hours IST on a business turnover of 5,165 lots. The same for August delivery edged lower by Rs 16, or 0.52 percent, to Rs 3,069 per barrel on a business volume of 135 lots.
The value of July and August's contracts traded so far is Rs 755.55 crore and Rs 3.31 crore, respectively.
Patel expects oil prices to trade sideways to down for the day with support at $39 and resistance at $42. "MCX July Crude Oil futures has support at Rs 2,970 and resistance at Rs 3,110."
West Texas Intermediate crude slipped 0.25 percent to $40.52 per barrel, while Brent crude, the London-based international benchmark, was down 0.05 percent to $43.06 per barrel.For all commodities related news, click here