Crude oil futures jumped to Rs 1,858 per barrel on May 8 as participants increased their long positions. Prices rose after Saudi Arabia raised crude oil prices for June delivery and US data showed weekly crude oil stockpiles rose less than expected.
The decline in dollar index and positive equity indices supported the positive trade in crude oil for the day, said Tapan Patel- Senior Analyst (Commodities), HDFC Securities. He added that rise in China oil imports also supported prices.
Investors and traders are weighing oversupply worries as storage spaces are filling fast globally. The output cut from OPEC+ nations and lifting of the lockdown in several nations may limit the downside in oil prices.
Crude oil prices traded steady on May 7 as Nymex WTI Crude oil traded near $24 on mixed global cues. Crude oil futures prices on the Multi Commodity Exchange for May gained more than 2 percent to Rs 1,846 per barrel in afternoon trade.
In the futures market, crude oil for May delivery touched an intraday high of Rs 1,906 and an intraday low of Rs 1,807 per barrel on MCX. So far in the current series, black gold has touched a low of Rs 796 and a high of Rs 3,905.
Crude oil for May delivery rose Rs 24, or 1.31 percent, to Rs 1,858 per barrel at 14:59 hours IST on a business turnover of 7,183 lots. The same for June delivery was up Rs 2, or 0.10 percent, to Rs 1,975 per barrel on a business volume of 1,050 lots.
The value of May and June contracts traded so far is Rs 1,152.83 crore and Rs 24.61 crore, respectively.
Patel expect oil prices to face resistance near $27 and support at $22. "MCX May Crude Oil futures has support at Rs 1,700 and resistance at Rs 1,950."
West Texas Intermediate crude gained 3.57 percent at $24.39 per barrel, while Brent crude, the London-based international benchmark, rose 2.14 percent to $30.09 per barrel.
Source:- moneycontrol.com