The crude oil futures is very high in the hope that petrol prices will grow next quarter with the reopening of economic activities. Oil prices rose during the OPEC + meeting today to review the world market and discuss their production plan.
At MCX, crude oil delivery in June earned Rs 97, or 1.99 percent, to Rs 4,967 in the barrel at 16:10 IST with a business profit of 11,098 lots. While July’s delivery rose Rs 92, or percent 1.89 to Rs 4,968 per barrel per business volume with 652 lots.
The value of the June and July contracts sold to date is Rs 1,109.62 crore and Rs 33.36, respectively.
West Texas Intermediate (WTI) crude rose 2.70% to $ 68.11 a barrel, while Brent crude, London’s international benchmark rose 2.02% to $ 70.72 a barrel.
“INYMEX crude trades higher higher near $ 68.1 / bbl before the OPEC + meeting as the party is expected to keep the production policy unchanged. And a supportive price is the prospect of higher travel demand in the US and Europe this summer. However, to measure the price of OPEC product growth, jump to US crude oil rig count until April 2020 highs and bio-related restrictions in Asia. Crude could sell more with the hope that OPEC can maintain its production policy ”, Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities.
Tapan Patel-Senior Analyst (Commodities), HDFC Securities said, “Crude oil prices have sold more than the high demand from the US, Europe and China for reopening economic activities. Strong industrial activity data from China and the weak dollar pushed oil prices higher over US markets recovered from the holidays. The high expectations expected from the future of summer driving have also supported oil trade prices. The market is awaiting the outcome of today’s meeting. ”
OPEC has been increasing its oil production in May, but low productivity in Nigeria, Angola and Iran has in part prevented a sharp increase from top producers in Saudi Arabia and Iraq which has led to lower inflation than expected from the organisation’s supply.
Thirteen OPEC members produced 25.52 million barrels per day (bpd) this month, an increase of 280,000 bpd since April.
However, the price tag has been the hope of a higher supply from Iran as world leaders continue to negotiate terms to renew the 2015 nuclear deal.
Black gold has been trading for over 5, 20, 50, 100 and 200 simple moving days with the best descriptive ratings on the daily chart. The Relative Strength Index (RSI) index is at 62.21, indicating positive price movements.
Crude oil prices are expected to sell throughout the day against $ 70 and support at $ 67 per barrel. MCX Crude oil June has support at Rs 4,890, resistance at Rs 5,040, Patel said.
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Kshitij Purohit, Product Manager, Finance and Products, CapitalVia Global Research Limited said the price is likely to be traded in the medium term as it continues to support Rs 4,885 and may test the resistance of Rs 4,950 in today’s session.