Crude oil futures dropped to Rs 4,762 per barrel on March 15. Crude oil slipped 0.9 percent last week on the MCX.
The energy commodity turned negative after a gap-up start and traded near day’s low.
The black gold has been trading higher than 5, 20, 50, 100 and 200 days’ moving averages on the daily chart. The momentum indicator Relative Strength Index (RSI) is at 66.29 indicating positive momentum in prices.
The number of rigs drilling crude oil in the US fell by 1 to 309 rigs for the week to March 12, said Baker Hughes in a weekly report.
The CFTC data showed that money managers increased net long positions by 7,625 lots in tbe last week.
West Texas Intermediate crude was up 0.21 percent to $ 65.75 per barrel, while Brent crude, the London-based international benchmark marginally higher 0.14 percent to $ 69.32 per barrel.
Tapan Patel, Senior Analyst (Commodities), HDFC Securities said, “Crude oil prices traded weakly during the week for the first time in last three weeks. The overall strength in the dollar index with a fall in European indices has triggered selling in oil from the resistance level of $ 68. Crude oil prices witnessed selling on lower demand concerns from China due to policy tightening expectations. However, the output cuts from OPEC and lower production in the US has supported oil prices to limit downside.”
“NYMEX crude trades erased early gains to trade flat near 65.70. Crude is supported by tightness expectations, marginal decline in US crude oil rig count and optimism about the US economy. However, vaccine concerns post suspension of AstraZeneca vaccine in some countries due to side-effects concerns is limiting the upside. Crude may remain volatile as OPEC deal is assessed however tightness concerns may continue to support at lower levels”, said Ravindra Rao, VP- Head Commodity Research at Kotak Securities
MCX iCOMDEX Crude Oil Index decreased 39.60 points, or 0.73 percent, at 5,396.88 at 15:35.
In the futures market, crude oil for March delivery touched an intraday high of Rs 4,826 and an intraday low of Rs 4,762 per barrel on MCX. So far in the current series, black gold has touched a low of Rs 3,800 and a high of Rs 4,967.
Crude oil delivery for March slipped Rs 35, or 0.73 percent, to Rs 4,762 per barrel at 15:36 hours IST with a business turnover of 4,664 lots.
Crude oil delivery for April edged lower Rs 27, or 0.56 percent to Rs 4,790 per barrel with a business volume of 739 lots.
The value of March and April’s contracts traded so far is Rs 645.70 crore and Rs 27.39 crore, respectively.
Tapan Patel- Senior Analyst (Commodities), HDFC Securities
Crude oil prices traded higher on demand growth optimism from China ahead of key economic data. Crude oil prices were trading up as plants resumed operations in Texas after cold snap.
Crude oil prices are expected to trade sideways to up for the day with resistance at $ 68 and support at $ 65 per barrel. MCX Crude oil March has support at Rs 4,750, resistance at Rs 4,870.
For all commodities-related news, click here
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.