In the futures market, crude oil for June delivery touched an intraday high of Rs 2,629 and an intraday low of Rs 2,557 per barrel on the MCX
Crude oil futures gained Rs 2,594 per barrel on May 21 after data showed US crude inventories fell and OPEC+ members adhered to the output cut.
The US Energy Information Administration (EIA) reported that crude fell by 5.6 million barrels for the week-ended May 16.
In the futures market, crude oil for June delivery touched an intraday high of Rs 2,629 and an intraday low of Rs 2,557 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 gained Rs 74, or 2.94 percent, to Rs 2,594 per barrel at 17:39 hours IST on a business turnover of 6,896 lots. The same for July delivery rose Rs 58, or 2.25 percent, to Rs 2,640 per barrel on a business volume of 244 lots.
The value of June and July contracts traded so far is Rs 1,421.49 crore and Rs 7.26 crore, respectively.
On the technical charts, crude is trading in an ascending broadening wedge pattern. On the hourly chart, price is trading with support of its 20 and 60 Exponential Moving Averge (EMA), which is a bullish sign for prices.
According to Axis Securities, it if breakouts above Rs 2,630, it would push price higher towards Rs 2,700-2,750 levels intraday.
Crude is expected to trade positively with support placed at Rs 2,500 and intermediate support at Rs 2,550 levels, according to Motilal Oswal. The broking firm advised its clients to buy on dips targeting higher resistance at Rs 2,650-2,700.
However, not all traders are bullish. Ravindra Rao, VP-Head Commodity Research at Kotak Securities, sees crude trading sideways amid lack of fresh cues.
West Texas Intermediate crude gained 2 percent at $34.16 per barrel, while Brent crude, the London-based international benchmark was up 2.32 percent to $36.58 per barrel.
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