Crude oil futures were steady Rs 2,987 per barrel on September 29 as participants increased their short position as seen by the open interest. Crude oil prices fell on concerns of rising coronavirus cases may force countries to reimpose restriction once again thus impacting demand.
Tapan Patel- Senior Analyst (Commodities), HDFC Securities said, “Crude oil prices pared early gains on-demand growth concerns despite US stimulus hopes. Crude oil prices traded weak on oversupply fears as production from Libya and Iraq will come online in the near term. Libya’s crude production has soared this week, from 100,000 barrels per day (bpd) to 250,000 bpd.”
“NYMEX crude trades weaker but in a range above $40/bbl amid mixed factors. Weighing on crude price is increasing supply from Libya, rise in US crude oil rig count and rising virus cases globally. However, supporting price is strike concerns relating to Norway, expectations of another decline in US crude stocks and OPEC’s willingness to take more measures. Crude may remain range-bound on mixed factors”, said Ravindra Rao, VP-Head Commodity Research, Kotak Securities
In the futures market, crude oil for October delivery touched an intraday high of Rs 2,989 and an intraday low of Rs 2,966 per barrel on MCX. So far in the current series, black gold has touched a low of Rs 2,718 and a high of Rs 3,320.
Crude oil delivery for October slipped Rs 2, or 0.07 percent, to Rs 2,987 per barrel at 15:38 hours IST with a business turnover of 3,451 lots.
Crude oil delivery for November eased Rs 14, or 0.46 percent, to Rs 3,020 per barrel with a business volume of 74 lots.
The value of October and November’s contracts traded so far is Rs 498.03 crore and Rs 1.33 crore, respectively.
Patel expects crude oil prices to trade sideways to down with support at $38 and resistance at $41. MCX Crude oil October has support at Rs 2,910 and resistance at Rs 3,060.
West Texas Intermediate crude was down 0.44 percent at $40.42 per barrel, while Brent crude, the London-based international benchmark slipped 0.40 percent to $42.70 per barrel.