Last Updated : 30 September 2013 at 17:20 IST
India Crude Oil futures bearish on weak global cues, US Govt shutdown concerns
Source :Commodity Online Editorial Desk
The trend in crude oil futures for October delivery on India's Multi Commodity Exchange (MCX) look bearish and may continue with its trend for the day. MCX crude oil futures for October delivery was seen trading down by 1.93% at Rs.6407 per barrel as of 16.39 IST on Monday.
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MUMBAI (Commodity Online): India crude oil futures continued its southward journey on Monday tracking bearish trend on NYMEX, weak global cues and concerns that partial shutdown of US government may adversely impact the commodity. The trend in crude oil futures for October delivery on India's Multi Commodity Exchange (MCX) look bearish and may continue with its trend for the day. MCX crude oil futures for October delivery was seen trading down by 1.93% at Rs.6407 per barrel as of 16.39 IST on Monday.
“For intra-day, support for MCX crude oil October delivery is seen at 6370 while resistance is seen at 6450. If prices break the level of 6370, then further downward movement is expected till 6340. Traders may take sell position near 6420 with the stop loss of 6450 for target near 6380 and 6350” said Amrita Mashar, Research Analyst at Commodity Online.
Crude oil futures in the global market edged down on weak fundamentals. US crude oil futures continued its bearish rally and declined to a ten week low on Monday amid rebounding supply, easing Middle East tensions and higher than expected US stock-piles. WTI crude oil for November delivery on NYMEX was seen trading with a loss of $1.36 at $101.51 per barrel as of 16.57 IST on Monday.
Crude oil exports from Libya have increased above 580,000 barrels (bpd) after oil export facilities in the west reopened this month. However, oil facilities in the east remain shut by protesters.
US president Barack Obama and Iranian President Hassan Rouhani talked by telephone on Friday and there are indications that both leaders are serious about reaching an agreement over Iran's controversial nuclear program.
US commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 2.6 million barrels from the previous week. At 358.3 million barrels, US crude oil inventories are toward the upper range for this time of year during the week ending September 20, 2013, according to the data released by US Energy Information Administration (EIA) on Wednesday, last week.
Concerns over a possible partial shutdown of US government was seen pressuring the commodity prices to certain extent in both domestic and global market. US Government is on the verge of a shutdown for the first time in 17 years and markets have turned jittery with gold making gains while crude oil and base metals complex is set to weaken further as economic growth prospects are hindered and whatever positive trends recently seen in the economy may be reversed, analysts said.
The House of Representatives voted 231-192 yesterday to extend U.S. government funding through Dec. 15 by tying it to limits on the central provisions of Obama’s Affordable Care Act. All eyes are glued to the Senate vote on the midnight of Monday which will decide whether worse is in store for the US economy. Bloomberg quoting analysts said that economic growth could fall 1.4% if the duration of the shutdown is extended as workers lose jobs and production is curtailed.
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