In the futures market, crude oil for June delivery touched an intraday high of Rs 2,625 and an intraday low of Rs 2,564 per barrel on MCX.
Crude oil futures are steady at Rs 2,585 per barrel on May 26 as participants increased their long position as seen by the open interest. Oil prices took a breather after a sharp rally in the last few days.
The number of rigs drilling crude oil in the US decreased by 21 to 237 rigs last week.
Crude oil prices traded higher, returning from the long weekend after reporting the fourth straight weekly gain. The prices rose on improved demand outlook, strong equity indices on vaccine hopes and lockdown easing measures from major economies, said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
The output cut effects have so far helped the oil market to gain stability. Russia with its best compliance has reported its oil output dropping to 8.5 million barrels per day for May and June.
In the futures market, crude oil for June delivery touched an intraday high of Rs 2,625 and an intraday low of Rs 2,564 per barrel on MCX. So far in the current series, black gold has touched a low of Rs 1,361 and a high of Rs 4,415.
Crude oil delivery for June gained Rs 14, or 0.54 percent, to Rs 2,591 per barrel at 14:54 hours IST with a business turnover of 4,925 lots.
Crude oil delivery for July rose Rs 9, or 0.34 percent, to Rs 2,646 per barrel with a business volume of 232 lots.
The value of June and July contracts traded so far is Rs 860.06 crore and Rs 6.69 crore, respectively.
Patel expects oil prices to trade higher for the day with support at $32 and resistance at $37. MCX Crude oil June futures have support at Rs 2,480 with resistance at Rs 2,720.
West Texas Intermediate crude gained 2.59 percent at $34.11 per barrel, while Brent crude, the London-based international benchmark, was up 1.60 percent to $36.10 per barrel.
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