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Last Updated : Jan 22, 2020 03:37 PM IST | Source: Moneycontrol.com

Crude oil futures slip over surplus supply despite Libya outage

On the Multi Commodity Exchange, crude oil delivery for March contracts slipped Rs 53, or 1.26 percent, to Rs 4,140 per barrel with a business turnover of 809 lots.


Crude oil futures slipped 1.77 to Rs 4,138 per barrel on January 22 as participants increased their short position as seen by open interest. Investors also shrugged off the impact of almost all of Libya's crude production being off-line amid plentiful supplies elsewhere.

International Energy Agency (IEA) Executive Director Fatih Birol, on January 21, at the World Economic Forum, said that a surplus oil supply of one million barrels per day will keep crude prices subdued in the first half of 2020.

Sentiment across global markets took a hit overnight amid concerns over the coronavirus. Oil prices settled back as a well-supplied global market would be able to absorb disruptions that have cut Libya's crude production to a trickle. We expect the recent corrective move to continue till the 12,100 mark, Yes Securities said in a note to clients.

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In the futures market, crude rates touched an intraday high of Rs 4,171, and an intraday low of Rs 4,132 per barrel on MCX. For the February series, the price of crude touched a low of Rs 4,050, and a high of Rs 4,663.

On the Multi Commodity Exchange, crude oil delivery for March contracts slipped Rs 53, or 1.26 percent, to Rs 4,140 per barrel with a business turnover of 809 lots.

The crude for delivery in February contracts was down Rs 54, or 1.29 to Rs 4,132 per barrel with a business volume of 24,658 lots.

The value of the February contracts traded so far is Rs 2,009.64 crore, and that of March contracts saw a value of Rs 42.20 crore.

According to Axis Securities, crude oil prices traded volatile in the last trading session. Crude oil prices in the second session recovered from day’s low, and it closed near the day’s high of 4,190 levels. the immediate resistance zone can be seen around 4,205 levels. Breakout above the mentioned levels may push prices towards 4,235 on intraday basis.

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MCX crude oil has immediate support at Rs 4,115-4,070, whereas resistance is at Rs 4,190-4,220. Strong positive momentum can be seen once price is able to sustain above immediate resistance level of Rs 4,220, according to Motilal Oswal.

The price of West Texas Intermediate crude slipped 0.69 percent to $57.98 per barrel, while Brent crude, the international benchmark, was down 0.65 percent to $64.17 per barrel.

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First Published on Jan 22, 2020 03:20 pm
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