In the futures market, crude oil for June delivery touched an intraday high of Rs 2,934 and an intraday low of Rs 2,871 per barrel on MCX.
Crude oil futures eased to Rs 2,890 per barrel on June 11 as participants increased their short positions, on downbeat economic forecast by the US Federal Reserve and increase in US crude stockpiles.
The US Energy Information Administration (EIA) reported that US crude inventories jumped 5.7 million barrels to 538.1 for the week-ended June 5.
The Organisation for Economic Cooperation and Development (OECD) expects the global economy to contract 6 percent this year before bouncing back with 5.2 percent growth in 2021 - providing the outbreak is kept under control. The organisation said it will be the biggest peacetime downturn in a century.
Tapan Patel, Senior Analyst (Commodities), HDFC Securities, said crude oil prices traded down on weak global cues after the US Federal Reserve forecasted slower economic recovery for the year.
The Fed kept key interest rates unchanged at near-zero while it forecasted that the economy may contract by 6.5 percent for 2020.
In the futures market, crude oil for June delivery touched an intraday high of Rs 2,934 and an intraday low of Rs 2,871 per barrel on the Multi Commodity Exchange (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 futures for June delivery slipped Rs 75, or 2.53 percent, to Rs 2,889 per barrel at 14:49 hours IST on a business turnover of 5,414 lots.
The same for July delivery was down Rs 73, or 2.44 percent, to Rs 2,923 per barrel on a business volume of 332 lots.
The value of June and July contracts traded so far is Rs 1,058.17 crore and Rs 10.02 crore, respectively.
Patel expects oil prices to trade sideways to down for the day with support at $36 and resistance at $40. "MCX June Crude Oil futures has support at Rs 2,790 and resistance at Rs 2,940."
West Texas Intermediate crude declined 3.54 percent to $38.20 per barrel, while Brent crude, the London-based international benchmark was down 3.21 percent to $40.39 per barrel.
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