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Last Updated : May 18, 2020 03:44 PM IST | Source: Moneycontrol.com

Crude oil futures up nearly 6%, WTI trades above $31 a barrel

The value of May and June contracts traded so far is Rs 686.02 crore and Rs 217.11 crore, respectively.


Crude oil futures rose to Rs 2,380 per barrel on May 18 as participants increased their long positions. Oil price jumped to one and half month high amid signs of demand pick up and increased efforts by producers to remove glut.

The number of US rigs drilling crude oil decreased by 34 to 258 rigs last week, the lowest since July 2009.

WTI June contract is due to expire on May 19 and there are very little signs of a repeat of the historic plunge of last month.

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Crude oil prices rallied supportive fundamentals with prices ended in green for the third consecutive week. The output cut effects from major oil producers and signs of demand recovery with ease in lockdown measured has supported crude oil prices to trade higher, said Tapan Patel- Senior Analyst (Commodities), HDFC Securities.

The US crude oil and natural gas rigs count has hit all time lows as many of US energy firm have shit productions which has eased supply pressure at physical delivery point at Cushing, Oklahoma.

The NYMEX WTI June contract is set to expire on 19th May 2020 where many traders are expecting high volatility in the prices. However, we do not expect the previous expiry like situation this time as many traders have opt for early rollover to next contract, Patel added.

In the futures market, crude oil for May delivery touched an intraday high of Rs 2,380 and an intraday low of Rs 2,302 per barrel on MCX. So far in the current series, black gold has touched a low of Rs 796 and a high of Rs 3,905.

Crude oil delivery for May rose Rs 134, or 5.97 percent, to Rs 2,380 per barrel at 15:16 hours IST with a business turnover of 2,714 lots.

Crude oil delivery for June gained Rs 136, or 6 percent, to Rs 2,403 per barrel with a business volume of 2,911 lots. The May crude futures narrowed its premium against June crude contract to Rs 23, or 0.96 percent.

The value of May and June contracts traded so far is Rs 686.02 crore and Rs 217.11 crore, respectively.

Patel expect oil prices to trade higher with support at $27 and resistance at $34. MCX Crude oil June futures has support at Rs 2,150 with resistance at Rs 2,470.

West Texas Intermediate crude gained 6.23 percent at $31.36 per barrel, while Brent crude, the London-based international benchmark was up 5.08 percent to $34.15 per barrel.

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First Published on May 18, 2020 03:43 pm
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