Crude oil futures edged lower to settle at Rs 3,149 per barrel on August 28 as participants trimmed their position as seen by the open interest. Crude oil prices dropped as the destruction caused by Hurricane Laura was less severe than the market had expected.
Crude oil ended the week with a marginal loss of Rs 6 or 0.19 percent for the week.
Abhishek Bansal, Founder Chairman, Abans Group said, “Oil prices fell after Hurricane Laura made a limited impact on the Gulf Coast. The rally in oil was halted due to an increase in US oil production, and exports data. Crude prices are likely to remain under pressure, on the back of weekly inventory, and production data, which showed that US crude oil inventories, as of August 21, were 15.2 percent above the seasonal 5-year average.”
“Supply worries from OPEC+ members, rising US oil exports and a weakness in oil demand, due to the coronavirus pandemic, is expected to keep a lid on oil prices”, he said.
The number of rigs drilling crude oil in the US fell by 3 to 180 rigs this week from 183 rigs last week, said Baker Hughes in a weekly report. The monthly rig count has risen for the first time since December.
WTI Crude oil on Nymex is likely to find key resistance levels around $43.90 and $44.60; meanwhile, strong support is seen around the 20-day EMA at $42.35, and the 50-day EMA at 39.71, said Bansal.
In the futures market, crude oil for September delivery touched an intraday high of Rs 3,188 and an intraday low of Rs 3,135 per barrel on MCX. So far in the current series, black gold has touched a low of Rs 2,943 and a high of Rs 3,285.
Crude oil delivery for September slipped Rs 23, or 0.73 percent, to settle at Rs 3,149 per barrel with a business turnover of 1,636 lots. While, crude delivery for October was down Rs 13, or 0.41 percent, to close at Rs 3,190 per barrel with a business volume of 28 lots.
The value of September and October contracts traded on August 28 was Rs 1,763.46 crore and Rs 3.15 crore, respectively.
West Texas Intermediate crude fell 0.19 percent at $42.96 per barrel, while Brent crude, the London-based international benchmark was up 0.59 percent to $45.87 per barrel.For all commodities related news, click here