Crude oil futures trade firm at Rs 3,018 a barrel, Brent at near $43

Crude oil futures soared to Rs 3,018 per barrel on November 10 as participants increased their long position as seen by the open interest. Crude oil price gained after Saudi Arabia hinted that OPEC+ may adjust its current supply pact, and on news of a potential coronavirus vaccine breakthrough by Pfizer that prevents 90 percent of symptomatic infections in a large scale study.

Markets will look for cues from the crude inventory data over the next 2-day period with API expected to release the data tonight after market hours and EIA releasing data tomorrow.

Tapan Patel- Senior Analyst (Commodities), HDFC Securities said, “Crude oil prices traded higher with NYMEX WTI Crude oil prices rose by 0.50 percent to $40.15 per barrel on Tuesday. MCX Crude oil November futures were trading marginal up to Rs 3,003 by noon session.

Crude oil prices traded higher on positive global cues and expectations of a boost in fuel demand. The rally in global equity indices with a surge in airline and tourism sector stocks kept downside limited in oil prices.

Patel expects crude oil prices to trade sideways to up with support at $38 and resistance at $42. MCX Crude oil November has support at Rs 2,940, resistance at Rs 3,070.

West Texas Intermediate crude was up 0.92 percent quoting at $40.66 per barrel, while Brent crude, the London-based international benchmark edged higher 1.16 percent to $42.89 per barrel.

MCX iCOMDEX Crude Oil Index rose 24.84 points, or 0.89 percent, at 2,806.28 at 16:01.

In the futures market, crude oil for November delivery touched an intraday high of Rs 3,047 and an intraday low of Rs 2,931 per barrel on MCX. So far in the current series, black gold has touched a low of Rs 2,540 and a high of Rs 3,127.

Crude oil delivery for November gained Rs 17, or 0.57 percent, to Rs 3,018 per barrel at 16:02 hours IST with a business turnover of 3,251 lots.

Crude oil delivery for December jumped Rs 15, or 0.49 percent, to Rs 3,049 per barrel with a business volume of 127 lots.

The value of November and December’s contracts traded so far is Rs 1,510.44 crore and Rs 6.09 crore, respectively.

Trading strategy

Sriram Iyer, Senior Research Analyst at Reliance Securities

Technically, WTI Crude Oil has started to trade above 100-Daily Moving Average near $40.33 levels indicating a positive move in the counter. It could trade in a range of $39.40-$41.33 levels.

Technically, MCX Crude November has given a positive Reversal above Rs 3,000 levels, however, it holds a strong resistance near Rs 3,050-3,060 levels whereas support is at Rs 2,990-2,945 levels.