Crude oil prices closed flat last week – Brent crude oil futures on the Intercontinental Exchange (ICE) ended at $80.6 per barrel and crude oil futures on the MCX closed at ₹6,345.

By the middle of last week, the prices saw a drop on the back of the US inventory data. Energy Information Administration (EIA) data showed the crude oil stocks in the US increased 8.7 million barrels versus the expected increase of 1 million barrels for the week ended November 17.

But the fall was arrested as the news of unexpected delay in OPEC+ meeting created a fuss. Reports are coming out that the group has differences in setting the output targets for 2024, especially with African countries.

Besides, there are expectations that Saudi Arabia could extend and deepen the production cuts into 2024 as well now. This arrested the fall in price and net-net, prices closed flat for the week.

MCX-Crude oil (₹6,345)

The December futures of crude oil made a high of ₹6,548 last Monday. But then, it saw a sharp fall to mark an intraweek low of ₹6,170 on Wednesday. The contract recovered in the following sessions to end at ₹6,345 on Friday.

The crude oil futures is now stuck between the crucial levels at ₹6,000 and ₹6,650. A breakout of ₹6,650 can turn the near-term outlook positive. In such a case, the price can rise to ₹7,000. A rally past this level can lift the contract to ₹7,250.

But if crude oil futures fall below the support at ₹6,000, the contract will, most probably, see another leg of downtrend. The nearest base below ₹6,000 is at ₹5,500. The contract might rebound after declining to this level.

Trade strategy: Broader trend is bearish. However, there is a loss in momentum. At the same time, crude oil futures is now trading within two important levels. Traders can stay away from trading until either ₹6,000 or ₹6,650 is breached.

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