December 26, 2023 / 09:52 AM IST
Sensex Today | Rahul Kalantri, VP Commodities, Mehta Equities:
Crude oil exhibited notable volatility, marking its second consecutive week of gains in the international markets. Although there was some profit-taking observed on Friday, the commodity closed the week with a net gain. The prevailing tensions in the Red Sea counteracted the impact of Angola’s departure from the OPEC nations. Additionally, last week’s release of U.S. economic data surpassed expectations, providing further support to oil prices.
The weakening dollar index and U.S. bond yields also contributed to the favourable conditions for oil prices. The increase in U.S. crude oil inventories during the past week acted as a limiting factor on gains, with inventories surging by 2.9 million barrels, imposing a cap on potential upside movements.
Anticipating ongoing volatility, we project crude oil prices to remain dynamic in today’s trading session. Support levels for crude oil are identified at USD 73.10–72.30, with resistance levels at USD 74.50-75.10 for the current session. In terms of INR, crude oil finds support at Rs 6,070-5,960, while encountering resistance at Rs 6,240-6,320.
