Crude oil futures decreased to Rs 2,939 per barrel on September 21 as individuals elevated their quick positions. Costs fell monitoring the worldwide sell-off in equities on fears of recent curbs being imposed to stem rising novel coronavirus, or COVID-19, instances.
Barclays Commodities Analysis raised its oil worth forecasts for 2020, citing restricted potential draw back to its demand outlook. The financial institution raised its 2020 Brent and US West Texas Intermediate (WTI) worth forecasts by $2 to $43 and $39 per barrel, respectively.
Tapan Patel, Senior Analyst (Commodities), HDFC Securities, mentioned, “Crude oil costs declined on lifting up of the oil blockade in Libya, which has retuned Libyan output again to the market. Staff at Libya’s main Sharara discipline have restarted operations after Nationwide Oil Company introduced a partial lifting of pressure majeure.”
“Elevated storm exercise, decline in US crude oil rig rely and OPEC’s willingness to take further measures would possibly put a flooring to costs. The power in US Greenback Index would possibly set off some extra correction forward of contract expiration”, mentioned Ravindra Rao, VP-Head Commodity Analysis, Kotak Securities
Within the futures market, crude oil for September supply touched an intraday excessive of Rs 3,029 and a low of Rs 2,931 per barrel on the Multi-Commodity Change (MCX). Thus far within the present sequence, black gold has touched a low of Rs 2,672 and a excessive of Rs 3,285.
Crude oil futures for September supply slipped Rs 54, or 1.eight p.c, to Rs 2,939 per barrel at 15:50 hours IST on a enterprise turnover of two,221 heaps.
The identical for October supply declined Rs 47, or 1.56 p.c, to Rs 2,947 per barrel on a enterprise quantity of 1,187 heaps.
The worth of September and October contracts traded up to now is Rs 681.73 crore and Rs 11.87 crore, respectively.
Patel expects oil costs to commerce sideways to down for the day, with help and resistance for MCX September Crude Oil futures at Rs 2,890 and Rs 3,040 per barrel.
West Texas Intermediate crude was down 2.47 p.c at $40.30 per barrel, whereas Brent crude, the London-based worldwide benchmark, slipped 2.22 p.c to $42.19 per barrel.
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First Revealed on Sep 21, 2020 04:22 pm