On the Multi Commodity Exchange, crude oil delivery for February contracts is down Rs 2, or 0.05 percent, to Rs 4,176 per barrel with a business turnover of 9,546 lots.
Crude oil futures are steady at Rs 4,165 per barrel on January 17 as participants increased their long position as seen by the open interest. The prices were holding steady after China economy grew at its slowest pace in 30 years at 6 percent after Washington and Beijing inked “Phase One” agreement on January 15.
What is uncertain is whether China will adhere to a new agreement with the US. One of country's viable options involves stalling until this year's presidential race is decided. There are severe structural issues in the US-China trade. Likely difficulties in implementing many of these commitments suggests that there is a high risk that the deal might fall apart later this year, said Shweta Shah, Energy Analyst at Motilal Oswal.
"We need to bear in mind that trade war is not over yet. US has not removed all the tariffs on Chinese imports and China is still imposing its retaliatory duties. If commitment falls short, we could see a sell-off," she said.
In the futures market, crude rate touched an intraday high of Rs 4,176 and an intraday low of Rs 4,147 on MCX. For the January series, the crude touched a low of Rs 3,825 and a high of Rs 4,670.
On the Multi Commodity Exchange (MCX), crude oil delivery for February contracts is down Rs 2, or 0.05 percent, to Rs 4,176 per barrel with a business turnover of 9,546 lots.
The crude for delivery in January contracts slipped Rs 1, or 0.02 to Rs 4,164 per barrel with a business volume of 15,148 lots.
The value of the January contract traded so far is Rs 2,044.29 crore and February contract saw value of Rs 381.73 crore.
MCX Crude is expected to trade positively having good support at Rs 4,095 levels and intermediate support at Rs 4,135 level, according to Motilal Oswal. The brokerage firm advised its clients to buy targeting higher resistance at Rs 4,195-4,245 zone.West Texas Intermediate crude was marginally up 0.24 percent to $58.65 per barrel, while Brent crude, the international benchmark gained 0.34 per cent to $64.84 per barrel.