Moneycontrol PRO
Upcoming Event:Attend Quants League - 5 Days Live Algorithmic Options Trading Virtual Conference @ just Rs. 600/- brought to you by Moneycontrol Pro. Register Now!

Crude oil jumps on upbeat demand outlook after rising 2% last week

The black gold has been trading higher than 5, 20, 50, 100 and 200 days' simple moving averages and exponential moving averages on a daily chart.

Mumbai / June 21, 2021 / 04:47 PM IST
Source: Reuters

Source: Reuters

Crude oil futures traded firm on June 21 as participants rolled over their bullish positions as seen from open interest. The energy commodity climbed Rs 108, or 2.08 percent last week on the MCX.

On the MCX, crude oil delivery for June soared Rs 19, or 0.36 percent, to Rs 5,320 per barrel at 15:43 hours IST with a business turnover of 1,796 lots. The delivery for July climbed Rs 15, or 0.28 percent to Rs 5,304 per barrel with a business volume of 6,612 lots.

The value of June and July’s contracts traded so far is Rs 145 crore and Rs 486.14 crore, respectively.

West Texas Intermediate (WTI) crude advanced 0.14 percent to $71.39 per barrel, while Brent crude, the London-based international benchmark, slightly up 0.07 percent to $73.56 per barrel.

“NYMEX crude trades modestly higher near $71.65/bbl supported by drag in Iran’s nuclear talks, OPEC’s outlook of lower US crude production this year and upbeat demand outlook amid easing virus-related restrictions. However, weighing on price is a rise in US crude rig count to April 2020 highs and Fed’s monetary tightening expectations. Crude oil has managed to hold firm on demand expectations however the disconnect with larger financial markets may not continue for long,” said Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities.


Tapan Patel- Senior Analyst (Commodities), HDFC Securities said, “Crude oil prices managed to end in green after witnessing correction during the week. The WTI crude oil prices have kept the support of $70 per barrel intact despite of sell off in non-agro commodities. Crude oil prices traded strong on higher demand outlook. Crude oil prices rose on fuel demand recovery hopes ahead of US summer driving season.”

The number of rigs drilling crude oil in the US jumped by 8 to 373 for the week to June 18, the highest since April 2020, said Baker Hughes in a weekly report.

The increased pace of vaccinations and pick up in summer demand may keep oil prices up in the medium term.


The black gold has been trading higher than 5, 20, 50, 100 and 200 days' simple moving averages and exponential moving averages on a daily chart. The momentum indicator Relative Strength Index (RSI) is at 72.71, indicating upbeat movement in prices.

Trading Strategy

Tapan Patel- Senior Analyst (Commodities), HDFC Securities

Crude oil prices traded firm resuming uptrend with delay in Iran nuclear deal. The negotiations to revive the Iran nuclear deal paused on Sunday after hard-line judge Ebrahim Raisi won Iran’s presidential election. Crude oil prices were also supported by fuel demand recovery with the US summer driving season.

Crude oil prices are expected to trade sideways to up for the day with resistance at $73 and support at $70 per barrel. MCX Crude oil July has support at Rs. 5250, resistance at Rs.5380.

For all commodities-related news, click here

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

stay updated

Get Daily News on your Browser
ISO 27001 - BSI Assurance Mark