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Crude oil futures steady at Rs 4,628/barrel, likely to trade sideways; WTI trades above $61/bbl

The momentum indicator Relative Strength Index (RSI) is at 53.94 indicating neutral movement in prices.

Mumbai / April 23, 2021 / 04:28 PM IST

Crude oil futures were flat at Rs 4,628 per barrel on April 23 as participants increased their long positions as seen by the open interest. Crude oil was steady as concerns over declining production in Libya was offset by rising coronavirus cases globally threatening fuel demand.

The energy commodity traded in the positive territory after a gap-up start in the afternoon session tracking lacklustre global cues.

The black gold has been trading higher than 50, 100 and 200 days' moving averages but lower than the 5 and 20 days’ moving averages on a daily chart. The momentum indicator Relative Strength Index (RSI) is at 53.94 indicating neutral movement in prices.

Libya said its oil production fell to about 1 million barrels per day in recent days and could drop further due to budgetary issues.

The progress in negotiations between the world powers and Iran on the 2015 nuclear accord added to the bearish sentiment. Further adding to the bearish tone was a commitment by nations to reduce carbon emissions and adopt policies to tackle climate change.


“NYMEX crude trades modestly higher near $61.48/bbl. Crude trades higher supported by supply disruption relating to Libya, improvement in the US labour market and dovish stance of central banks. However, weighing on price is an unexpected rise in US crude oil stocks, rising virus cases and prospect of higher supply from Iran. Crude remains bound in the $60-64/bbl range ahead of the OPEC meeting next week but general bias is on the downside owing to virus concerns and rise in US crude stocks”, said Ravindra Rao, VP- Head Commodity Research at Kotak Securities

West Texas Intermediate crude was modestly up 0.20 percent to $61.55 per barrel, while Brent crude, the London-based international benchmark was flat at $65.40 per barrel.

MCX iCOMDEX Crude Oil Index increased 6.72 points, or 0.13 percent, at 5,184.75 at 15:51.

In the futures market, crude oil for May delivery touched an intraday high of Rs 4,662 and an intraday low of Rs 4,619 per barrel on MCX. So far in the current series, black gold has touched a low of Rs 4,219 and a high of Rs 4,847.

Crude oil delivery for May rose Rs 2, or 0.04 percent, to Rs 4,627 per barrel at 15:52 hours IST with a business turnover of 5,674 lots. 

Crude oil delivery for June gained Rs 1, or 0.02 percent to Rs 4,643 per barrel with a business volume of 137 lots.

The value of May and June’s contracts traded so far is Rs 975.75 crore and Rs 12.67 crore, respectively.

Trading Strategy

Tapan Patel- Senior Analyst (Commodities), HDFC Securities

Crude oil prices traded higher on Friday on expectations of fuel demand recovery from Europe with ease in COVID restrictions. Crude oil prices are expected to keep the current trading range over rising cases in India with many countries restricting travel from India.

Crude oil prices are expected to trade sideways to up for the day with resistance at $63 and support at $60 per barrel. MCX Crude oil May has support at Rs 4,580, resistance at Rs 4,720.

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Disclaimer: The views and investment tips expressed by experts on are their own and not those of the website or its management. advises users to check with certified experts before taking any investment decisions.
Sandeep Sinha

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