Crude oil futures traded steady at Rs 3,018 per barrel on October 20 as participants increased long position as seen by the open interest. Crude traded with marginal gain in the international market, tracking weakness in the dollar amid surging coronavirus cases globally and Libya’s plan to boost oil output.
Crude traded in a narrow range near $41/bbl amid mixed factors after OPEC’s review committee meeting failed to give much cues.
West Texas Intermediate (WTI) crude was up 0.17 percent, quoting at $40.99 per barrel. Brent crude, the London-based international benchmark, rose 0.35 percent to $42.47 per barrel.
MCX iCOMDEX crude oil index was down 1.16 points, or 0.03 percent, at 3,496.01 at 15:32.
“NYMEX crude trades modestly lower near $40.8/bbl, pressurised by demand concerns amid mixed economic data and rising virus cases. Lack of any clear cues from OPEC’s review committee meeting also weighed on prices. Crude may remain under pressure amid weakening demand outlook and lack of immediate move by OPEC," said Ravindra Rao, VP-Head Commodity Research, Kotak Securities.
In the futures market, crude oil for November delivery touched an intraday high of Rs 3,030 and an intraday low of Rs 2,992 per barrel on MCX. In the current series, crude has touched a low of Rs 2,798 and a high of Rs 3,127.
Crude oil delivery for November was flat at Rs 3,018 per barrel at 1535 hours, with a business turnover of 3,474 lots. The delivery for December gained Rs 9, or 0.29 percent, to Rs 3,064 per barrel with a business volume of 24 lots.
The value of November and December contracts traded, so far, is Rs 626.21 crore and Rs 0.79 crore, respectively.
Sriram Iyer, Senior Research Analyst at Reliance Securities
International oil prices were trading with modest cuts in the afternoon trade in Asia on October 20 as the impasse over the second US stimulus continued. Markets were also weighed down by OPEC and its allies showing no signs of changing course on plans to pare output cuts in January.
Technically, NYMEX WTI Crude was trading flat but was holding above 50-DMA, which could see a positive trend in a counter. Resistance is at $41.38-$41.80 and support holds at $40.43-$39.92.
Domestic oil prices were trading flat to marginally lower in the afternoon trade, tracking international prices. MCX November crude was trading above Rs 3,005, indicating sideways to upside momentum up to Rs 3,040-3,077 levels. Support is at Rs 2,985-2,960.
Tapan Patel- Senior Analyst (Commodities), HDFC Securities
Crude traded weak with NYMEX WTI prices marginally down to $40.90 on October 20. MCX Crude oil November futures were trading marginal down to Rs 3,013 at noon in line with weak global oil prices.
Prices are under pressure on concerns about fuel-demand recovery over fears that the second wave of the coronavirus infections in Europe and the US may reintroduce lockdown measures. Prices could trade sideways to down for the day on weak demand and oversupply concerns.
Crude can trade sideways to down with support at $39 and resistance at $42. MCX November crude has support at Rs 2,970, resistance at Rs 3,060.For all commodities related news, click here