Crude oil costs traded firm on the possibility of a get in the worldwide development, higher demand on worldwide force deficiency, lower supply and weak dollar. The costs were supported after OPEC in addition to partners stick to it production quota and increment output by 400,000 barrels each day in November in any case tension from consuming countries to raise production.
The energy commodity stretched out gains to trade at day’s high after flat to gap-down start, following the upbeat global trend.
On the MCX, crude oil delivery for October rose by Rs 35, or 0.62 percent, to Rs 5,651 for each barrel at 16:30 hours IST with a business turnover of 9,717 lots. The delivery for November moved by Rs 36, or 0.64 percent to Rs 5,642 for each barrel with a business volume of 931 lots.
The worth of October and November contracts traded so far is Rs 878.81 crore and Rs 32.19 crore, respectively.
West Texas Intermediate (WTI) crude bounced 3.02 percent to $78.17 per barrel, while Brent crude, the London-based international benchmark, acquired 3.17 percent to $81.79 per barrel.
“Crude oil prices extended weekly gains rising above three-year high reporting fourth consecutive gain last week. Crude oil traded higher on global power shortage and lower supply. Prices rallied on substitute demand from gas and coal consumers over rising prices. The surge in natural gas prices globally prompts power producers to move away from gas. Crude oil prices got support on expectations that OPEC plus nations may maintain output quota despite rising prices and higher demand,” said Tapan Patel- Senior Analyst (Commodities), HDFC Securities.
Sriram Iyer, Senior Research Analyst at Reliance Securities noted, “International oil prices have turned positive this afternoon in Asian trade ahead of OPEC meeting. We believe that If OPEC+ sticks to its planned 400,000 bpd increase in November, oil could test $90 very soon.”
“On the domestic front, if MCX Crude Oil October trades above Rs 5,600 level, the markets could continue its bullish momentum up to Rs 5,670-5,720 levels. Support is at Rs 5,596-5,545 levels,” Iyer added.
As per CFTC information, theorists raised their net long US crude prospects and alternatives positions by 21,067 agreements to 316,676 in the week to September 28.
The number of rigs drilling crude oil in the US expanded by 7 to 428 for the week to October 1, the highest since April 2020, said Baker Hughes in a weekly report.
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