Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities
International oil prices ended mixed on Monday as traders weighed prospects for demand amid the spread of the delta variant of the coronavirus that causes COVID-19.
Brent ended with small gains, while WTI ended marginally in the red.
Domestic crude prices also flat on Monday, tracking international prices.
On the other hand, supply side traders expect global markets to remain in deficit despite a decision by OPEC and its allies to raise production through the rest of the year and kept downside in check.
Reports of a crackdown by China on crude importers also contributed to price pressures.
According to a Reuters report, Beijing's crackdown on the misuse of import quotas combined with the impact of high crude prices could see China's growth in oil imports sink to the lowest in two decades in 2021, despite an expected rise in refining rates in the second half.
International oil prices have started flat to marginally higher this Tuesday morning in Asian trade as investors await inventory data this week starting with data from API tonight and EIA tomorrow.
Technically, if WTI Crude Oil witnesses a breakout above $71.00 we could see a continuation of the bullish momentum up to $71.90-$72.45 levels. Support is at $71.30-$70.75 levels.
Domestic crude could start flat to marginally higher this Tuesday morning tracking a subdued start in international prices.
On the domestic front, MCX Crude Oil will continue its bullish momentum up to 5390-5455 levels. Support is at 5340-5300 levels.
NYMEX Natural gas prices rose on Monday continued to find support by warm weather in the U.S.
Domestic natural gas ended higher on Monday, tracking overseas prices.
Warmer than normal weather is expected to cover most of the United States over the next 6-10 and 8-14 days.
According to the National Oceanic Atmospheric Administration, there is one tropical storm in the Atlantic or Gulf of Mexico that has a 10% chance of becoming a tropical cyclone over the next 48-hours.
Natural gas consumption in the electric power sector drives total consumption higher. Total U.S. consumption of natural gas rose by 1.5% compared with the previous report week, according to data from the EIA.
NYMEX Natural Gas prices have started flat this Tuesday morning in Asian trade. However, downside could be capped as warm weather in the U.S. could buoy cooling demand.
Technically, NYMEX Natural Gas could trade in a range of $3.950-$4.200 levels.
Domestic natural gas could start flat this Tuesday morning, tracking overseas prices.
On the domestic front, MCX Natural Gas July holds a strong support near 297.00-300.00 levels. Resistance is at 305.00-307.00 levels.
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