According to the latest news, crude oil futures increased to Rs 3,989 per barrel as participants boosted their long position. Significantly, crude oil prices rose on risk-on sentiment on the equity markets and expectations that Saudi Arabia-led OPEC+ would curb production in Q1.
Furthermore, the snowstorm in U.S. Northeast supported crude oil. Snowstorm boosted winter fuel demand and lifted prices.
According to the Head of Supply and Production Analytics at S&P Global Platts, Shin Kim, global oil prices declined in the first quarter of 2021. She says a rising call on OPEC for Q2 is likely. However, oil prices will witness a decline by the return of Iranian and U.S. oil.
WTI (West Texas Intermediate) crude increased by 1.83% and settled at $54.53 per barrel. Brent Crude, the London-based international benchmark, was bosted by 1.79% and touched $57.34 per barrel.
Furthermore, MCX iCOMDEX Crude Oil Intex increased by 2.15%, which equals 95.45 points and settled at $4,532.77.
Crude oil is likely to trade with support at $53 and resistance at $56
Meanwhile, in the futures market, crude oil for February delivery hit an intraday high and intraday low. Rs 3,992 and 3,944 per barrel, respectively. Besides, black gold touched an intraday high and low of Rs 3,992 and Rs 3,486.
Additionally, February boosted crude oil delivery by 2.15%, which equals Rs 84 and touched Rs 3,989 per barrel with a business turnover of 5,514 lots.
Crude oil delivery for March gained 2.04% or Rs 80 and settled at Rs 3,999 per barrel with a business turnover of 59 lots.
The value of February’s contracts traded at Rs 1,096.49 crore while March’s contracts stood at Rs 1.91 crore.
According to Tapan Patel, senior commodity analyst at HDFC Securities, crude oil prices have regained momentum on fuel demand recovery optimism over vaccine rollouts. He said that crude oil is likely to trade sideways with support at $53 and resistance at $56. In contrast, MCX Crude oil February has support at Rs 3,890 and resistance at Rs 4,020.
