Crude oil futures down 0.21% to Rs 4,732 per barrel on firm rupee; Brent climbs above $67



Crude oil futures fell marginally to Rs 4,732 per barrel on April 16 as participants increased their long positions as seen by the open interest. Crude oil eased on a sharp jump in rupee, surging COVID cases in India and elsewhere despite positive economic data.

The energy commodity traded flat after a gap-up start in the afternoon session tracking firm global cues.

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 60.46 indicating bullish movement in prices.

Crude oil has benefitted from weaker dollar, positive commentary from OPEC, IEA and EIA on global oil demand and fall in US jobless claims.

Crude oil is supported by strength in the US equity market that has surged to fresh record high and tensions relating to Iran which is planning to boost its nuclear capacity following an attack on its plants.

“NYMEX crude trades in a narrow range above $ 63.60/bbl. Crude is rangebound as support from upbeat US economic data, a decline in US crude oil stocks, upbeat global demand outlook and increasing tensions in the Middle East are countered by rising virus cases, prospect of higher OPEC supply and increased US-Russia tensions. Crude may remain choppy amid mixed factors however the general bias may be on the upside owing to decline in US crude stocks and US economic optimism,” said Ravindra Rao, VP- Head Commodity Research at Kotak Securities

West Texas Intermediate crude was up 0.22 percent to $ 63.60 per barrel, while Brent crude, the London-based international benchmark, jumped 0.28 percent to $ 67.13 per barrel.

MCX iCOMDEX Crude Oil Index decreased 12.31 points, or 0.23 percent, at 5,314.62 at 15:51.

In the futures market, crude oil for April delivery touched an intraday high of Rs 4,764 and an intraday low of Rs 4,710 per barrel on MCX. So far in the current series, black gold has touched a low of Rs 4,102 and a high of Rs 4,985.

Crude oil delivery for April slipped Rs 10, or 0.21 percent, to Rs 4,732 per barrel at 15:52 hours IST with a business turnover of 3,142 lots. 

Crude oil delivery for May slides Rs 11, or 0.23 percent to Rs 4,747 per barrel with a business volume of 4,346 lots.

The value of April and May’s contracts traded so far is Rs 453.21 crore and Rs 344.25 crore, respectively.

Trading Strategy

Tapan Patel- Senior Analyst (Commodities), HDFC Securities

Crude oil prices are expected to trade sideways to down for the day with resistance at $ 65 and support at $ 62 per barrel. MCX Crude oil April has support at Rs 4,650, resistance at Rs 4,780.

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