Crude oil futures jumped to Rs 2,747 per barrel on June 2 as participants increased their long positions. Prices were firm ahead of the upcoming meeting between the Organisation of the Petroleum Exporting Countries (OPEC) and its allies.
The market is likely to take a further cue from the American Petroleum Institute's (API) data scheduled to be released later in the day.
Tapan Patel, Senior Analyst (Commodities), HDFC Securities, said crude oil prices traded higher on growing prospects of OPEC+ extending its output cut.
OPEC+ nations may hold a meeting in coming week to discuss and review output cuts. Saudia Arabia has already proposed extending the output cuts till the end of the year provided Russia agrees to it.
In the futures market, crude oil futures for June delivery touched an intraday high of Rs 2,748 and an intraday low of Rs 2,687 per barrel on the Multi-Commodity Exchange (MCX). So far in the current series, black gold has touched a low of Rs 1,361 and a high of Rs 4,415.
Crude oil futures for June delivery rose Rs 78, or 2.92 percent, to Rs 2,747 per barrel at 15:18 hours IST on a business turnover of 5,694 lots.
The same for July delivery gained Rs 74, or 2.72 percent, to Rs 2,796 per barrel on a business volume of 229 lots.
The value of June and July contracts traded so far is Rs 972.24 crore and Rs 4.69 crore, respectively.
Patel expects oil prices to trade higher for the day with support at $34 and resistance at $38. On the MCX, he sees support for June crude oil futures at Rs 2,670 and resistance at Rs 2,810.
West Texas Intermediate crude increased 2.96 percent at $36.49 per barrel, while Brent crude, the London-based international benchmark, was up 2.95 percent to $39.45 per barrel.
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