Crude oil futures edged lower to Rs 3,545 per barrel on December 24. Crude oil prices declined after a gap up open and turned into negative territory to day’s low in the afternoon session.

The US Energy Information Administration (EIA) reported that US crude inventories dropped by 562,000 barrels for the week ended December 18 to 499.5 million barrels.

“NYMEX crude trades mixed near $48 per barrel. Supporting crude price is a weakness in the US dollar, recovery in equity markets, supply concerns relating to Nigeria and mixed inventory report. However, weighing on price is mixed US economic data, rising virus cases and rise in US crude rig count to May highs. Crude has recovered from recent lows; however, a sustained rise is unlikely amid rising virus risks and improving US supply,” said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.

West Texas Intermediate crude was up 0.15 percent quoting at $48.05 per barrel, while Brent crude, the London-based international benchmark was slightly higher 0.18 percent to $51.15 per barrel.

MCX iCOMDEX Crude Oil Index inched lower 26.23 points, or 0.65 percent, at 4,040.08 at 15:19.

In the futures market, crude oil for January delivery touched an intraday high of Rs 3,590 and an intraday low of Rs 3,528 per barrel on MCX. So far in the current series, black gold has touched a low of Rs 3,130 and a high of Rs 3,639.

Crude oil delivery for January slipped Rs 21, or 0.59 percent, to Rs 3,545 per barrel at 15:21 hours IST with a business turnover of 1,593 lots.

The value of January contracts traded so far is Rs 293.17 crore.

Crude oil prices recovered on the weaker dollar over hopes on BREXIT deal and bullish weekly inventory data. The UK and European Union were close to finalising a Brexit agreement by early January. The holiday weekend demand hopes also supported crude oil price to trade firm.

We expect crude oil prices to trade sideways to up with support at $47 and resistance at $50. MCX Crude oil January has support at Rs 3520, resistance at Rs 3640.