Crude oil futures slip 1.03%, WTI trades below $40 a barrel

Crude oil futures eased to Rs 3,000 per barrel on July 3 as participants increased their short positions. Crude oil continues to trade in a broad range amid lack of clear cues.

Tapan Patel, Senior Analyst (Commodities), HDFC Securities, said crude oil prices decline on Friday on worries over demand recovery on growing fear of coronavirus resurgence. The US has reported the jump in virus cases by 50000 for the third consecutive day which has raised questions over fuel demand recovery from the top oil consumer.

Crude oil delivery for July eased Rs 31, or 1.03 percent, to Rs 2,993 per barrel at 15:22 hours IST with a business turnover of 4,468 lots.

Crude oil delivery for August slipped by Rs 31, or 1.02 percent, to Rs 3,015 per barrel with a business volume of 123 lots.

The value of July and August contracts traded so far is Rs 971.47 crore and Rs 3.48 crore, respectively.

Patel expects oil prices to trade sideways to up for the day with support at $38 and resistance at $42. MCX Crude oil July futures has support at Rs 2,920 with resistance at Rs 3,080.

West Texas Intermediate crude slipped 1.72 percent at $39.95 per barrel, while Brent crude, the London-based international benchmark was down 1.60 percent to $42.45 per barrel.

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