Crude oil futures slipped 0.83 percent to Rs 3,587 per barrel on February 10 as participants increased their short positions, as seen by the open interest.
The price of crude oil extended its decline for the fifth straight week on worries that spread of coronavirus may impact demand in China, and when OPEC awaited Russia’s decision on whether to cut production.
Brent crude is down 22.69 percent since hitting a peak of $70.20 of January 6 as demand cut in China on virus out increase the fear of excess supplies in the market. MCX crude oil future had hit a high of Rs 4,663 on January 6 and is down 23.35 percent to date.
In the futures market, crude oil touched an intraday high of Rs 3,615 and an intraday low of Rs 3,572 per barrel on MCX. For the February series, the 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 slipped Rs 35, or 0.97 percent, to Rs 3,582 per barrel with a business turnover of 40,457 lots.
The crude for delivery in March contracts eased Rs 37, or 1.01 to Rs 3,611 per barrel with a business volume of 4,345 lots.
The value of the February contracts traded so far is Rs 3,463.71 crore, and those of March contracts saw a value of Rs 97.57 crore.
MCX Crude oil has continued its weakness for the fifth consecutive week and is now trading near strong support level of Rs.3550, immediate support is placed at Rs.3550 and resistance is at Rs.3880.
Bias remains weak as long as price holds below the resistance level of Rs.3880. Any pullback near immediate resistance level of Rs.3880 should be taken as shorting opportunity targeting support level of Rs.3550, according to Motilal Oswal.
West Texas Intermediate (WTI) crude dipped 0.60 percent to $50.02 per barrel, while Brent crude, the international benchmark was up 0.62 percent to $54.13 per barrel.