Crude oil futures gained 0.67 percent to Rs 3,609 per barrel on February 5 as participants increased their long position as seen from the increase in open interest.
The oil market might see depressed demand or at least four months because of China’s coronavirus outbreak, and a large crude surplus that is not expected to clear at least until August.
US oil inventories rose 4.2 million barrels for the week that ended on January 31, according to data released by the American Petroleum Institute against analysts anticipations of a build-up of 2.8 million barrels as per Reuters’ poll.
In the futures market, crude oil touched an intraday high of Rs 3,642 and an intraday low of Rs 3,551 per barrel on the MCX. For the February series, crude touched a low of Rs 3,551 and a high of Rs 4,663.
On the Multi Commodity Exchange, crude oil delivery for February contracts rose Rs 56, or 1.56 percent, to Rs 3,640 per barrel with a business turnover of 32,885 lots.
The delivery for crude’s March contracts gained Rs 43, or 1.19 to Rs 3,654 per barrel with a business volume of 3,767 lots.
The value of the February contracts traded so far is Rs 4,767.93 crore, and those of March contracts saw a value of Rs 146.63 crore.
Crude oil prices gave a gap down opening in the morning session. Prices edged higher in the last trading session, but it failed to sustain near the day’s high, and closed below the support zone of 3580 levels, according to Axis Securities.
Short term trend is negative for prices, as they are trading below 9 and 20 days EMA, and RSI is below 40 levels that indicates a low momentum in prices.
The broking firm advised its clients to sell Crude oil below Rs 3,570 for the target of Rs 3,540-3520 on an intraday basis.
MCX crude oil has immediate support at Rs 3,560-3,520, whereas resistance is at Rs 3,620-3,660, according to Motilal Oswal. The broking firm advised its clients that any pullback near the resistance area should be taken as a selling opportunity.
West Texas Intermediate crude gained 2.40 percent to $50.80 per barrel, while Brent crude, the international benchmark was up 2.76 percent to $55.45 per barrel.
News Source:- Moneycontrol