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Last Updated : Jan 15, 2020 03:49 PM IST | Source: Moneycontrol.com

Crude oil futures slip 0.77% on concerns US-China deal may not boost demand

On the Multi Commodity Exchange, crude delivery for February contracts slipped Rs 28, or 0.67 percent, to Rs 4,125 per barrel with a business turnover of 5,916 lots.

Crude oil futures slipped 0.77 percent to Rs 4,101 per barrel in afternoon trade on January 14, as participants increased their short position and on concerns that the US-China trade deal may not boost demand.

Prices came under pressure after treasury secretary Steven Mnuchin said on January 14 that the United States would keep in place tariffs on Chinese goods until the completion of a Phase 2 trade deal, a Reuters report said.

Crude oil prices have fallen over 12 percent from recent highs on receding fears of a disruption in supplies on account of US-Iran tensions.

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The crude is now consolidating near $58/bbl ahead of EIA inventory report on January 16 and signing of the so-called phase one US-China trade deal.

In the futures market, the crude touched an intraday high of Rs 4,126 and an intraday low of Rs 4,099 on the Multi Commodity Exchange (MCX). For the January series, the crude touched a low of Rs 3,825 and a high of Rs 4,670.

On MCX, crude oil delivery for February slipped Rs 28, or 0.67 percent, to Rs 4,125 per barrel with a business turnover of 5,916 lots.

The crude for delivery in January  was down by Rs 28, or 0.77, to Rs 4,110 per barrel with a business volume of 24,236 lots.

The value of the January contract traded so far is Rs 2,079.43 crore and the February contract saw a value of Rs 125.54 crore.

MCX Crude is expected to trade negatively with good resistance at Rs 4,170 and intermediate resistance at Rs 4,140 level, according to Motilal Oswal. The brokerage firm advised clients to sell targeting lower support at Rs 4,060-4,020.

West Texas Intermediate crude was marginally down 0.41 percent to $57.99 per barrel, while Brent crude, the international benchmark, slipped 0.33 per cent to $64.28 per barrel.

 

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First Published on Jan 15, 2020 03:49 pm
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