Crude oil futures rose to Rs 2,982 per barrel on September 25 as participants increased their long positions. Black gold along with other commodities have stabilised as a sell-off in equity markets came to a halt while the dollar’s ascent stalled.
Britain, Germany and France imposed new restrictions to stem the coronavirus spread, which could affect fuel demand.
Tapan Patel, Senior Analyst (Commodities), HDFC Securities, said, “Crude oil prices traded up on hopes of additional stimulus measures to support US economic recovery. However, weaker demand is still a concern for the market amid a surge in virus infections. The return of oil supply from Libya and increase in cargos from Iraq may weigh on prices.”
“Mixed factors may keep price rangebound. However, general bias is on the upside, owing to decline in US crude stocks and OPEC’s willingness to do more,” said Ravindra Rao, VP-Head Commodity Research, Kotak Securities.
In the futures market, crude oil for October delivery touched an intraday high of Rs 3,004 and a low of Rs 2,969 per barrel on the Multi-Commodity Exchange (MCX). So far in the current series, black gold has touched a low of Rs 2,718 and a high of Rs 3,320.
The same for October delivery gained Rs 9, or 0.3 percent, to Rs 2,982 per barrel at 15:23 hours IST on a business turnover of 3,223 lots.
Crude oil delivery for November rose Rs 10, or 0.33 percent, to Rs 3,033 per barrel on a business volume of 43 lots.
The value of October and November contracts traded so far is Rs 578.15 crore and Rs 1.06 crore, respectively.
Patel expects crude oil prices to trade sideways to up with support at $38 and resistance at $41. “MCX Crude oil October has support at Rs 2,920 and resistance at Rs 3,060.”
West Texas Intermediate crude was up 0.15 percent at $40.37 per barrel, while Brent crude, the London-based international benchmark, gained 0.26 percent to $42.05 per barrel.