Crude Oil - July 5, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

International oil prices ended mixed on Friday as traders remained on the sidelines, even as OPEC+ agreed on Friday to add more oil to the market from August and extend the duration of their pact on their remaining production curbs for longer.

Brent ended with gains, while NYMEX ended marginally in the red.

Domestic crude prices ended lower on Friday, tracking weak NYMEX prices.

However, the United Arab Emirates still opposed the extension and final decision will be taken on Monday.

Under the new deal OPEC would release more barrels from August 2021 and extend the duration of the output pact to the end of 2022 from its original April 2022 expiry.

The United Arab Emirates reportedly objected and said that it should be allowed to pump more than it's allowed under the revised agreement on output cuts that OPEC+ approved in April 2020.

Brent prices have started weaker this Monday morning in Asian trade. NYMEX is shut today on account of Independence Day Holiday.

Domestic crude could start flat to marginally lower this Monday morning tracking weak Brent prices.

Technically, MCX Crude Oil July holds a Resistance near 5620-5660 levels. Support is at 5530-5480 levels.

NYMEX Natural gas prices were slightly higher on Friday ahead of a long U.S. holiday weekend.

Domestic natural gas ended higher on Friday, tracking overseas prices.

According to the National Oceanic Atmospheric Administration, Hurricane Elsa has formed in the Atlantic and it is heading for the Gulf of Mexico.

The current trajectory for the storm is to move into the Easter Gulf of Mexico and move over Florida.

Any trajectory westward would push the storm into the Natural Gas Producing regions near New Orleans.

This would generate upward volatility to prices.

The weather is expected to remain warmer than normal in the West and North East for the next 2-weeks, according to NOAA.

The U.S. consumption of natural gas could increase driven by demand for power generation.

NYMEX is shut today on account of Independence Day Holiday.

Domestic natural gas could start flat this Monday morning and remain flat amid lack of international cues.

Technically, MCX Natural Gas July holds a strong support near 276-272 levels. Resistance is at 280-283 levels.

Disclaimer: The recommendations, if any, made herein are expression of views and/or opinions and should not be deemed or construed to be neither advice for the purpose of purchase or sale of any security, derivatives or any other security through RSL nor any solicitation or offering of any investment /trading opportunity on behalf of the issuer(s) of the respective security(ies) referred to herein. These information / opinions / views are not meant to serve as a professional investment guide for the readers. No action is solicited based upon the information provided herein. Recipients should rely on information/data arising out of their own investigations. Readers are advised to seek independent professional advice and arrive at an informed trading/investment decision before executing any trades or making any investments. While due care has been taken to ensure that the disclosures and opinions given are fair and reasonable, none of the directors, employees, affiliates or representatives of RSL shall be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including lost profits arising in any way whatsoever from the information / opinions / views contained herein.

Source : Equity Bulls

Keywords