MCX Crude Oil to continue bearish trend

Market Magnify

Oil closed lower on Monday after a Tehran official indicated the Islamic Republic might miss another deadline in securing a nuclear deal integral to lifting Western sanctions on its crude exports.

Crude oil may remain on weaker path tracking subdued international markets as today API inventory data to give further direction to the prices. Overall it can move in range of 3300-3410 in MCX, according to SMC Global.

Crude Oil July contract has been trading down by -2.33 per cent to 3272 level at 11.14am on Tuesday at India’s Multi Commodity Exchange(MCX).

Oil closed lower on Monday after a Tehran official indicated the Islamic Republic might miss another deadline in securing a nuclear deal integral to lifting Western sanctions on its crude exports.

Crude futures had fallen nearly $2 a barrel earlier in the session on reports that Iran and world powers were closing in on a nuclear deal that would allow its oil to re-enter an over supplied market.

Gasoline, which has often directed action in U.S. crude over the past six weeks on signs of runaway fuel demand in the peak summer driving season, fell 2.4 percent.

Although analysts said it would take until 2016 before Iran returns to full-scale oil exports, most estimate that there would be an export jump of around 200,000 barrels per day in the short term.

The global crude market already has a 2.6 million bpd surplus. Natural gas may open on positive note on strong weather demand as it may move in range of 178-186 in MCX.

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