Crude oil prices traded lower on Monday after OPEC announced a higher than expected output hike in August, while uncertainty over US tariffs and their potential impact on global economic growth weighed on oil demand expectations.
MCX crude oil prices opened 1.93% lower at ₹5,580 level as against its previous close of ₹5,690 level. At 9:55 AM, crude oil prices traded 0.42% lower at ₹5,666 per barrel.
International benchmark Brent crude oil futures fell 0.69% to $67.83 a barrel, while US West Texas Intermediate crude was at $66.05, down 1.42%.
The Organization of the Petroleum Exporting Countries and their allies, a group known as OPEC, agreed on Saturday to raise production by 548,000 barrels per day in August, Reuters reported.
The August increase represents a jump from monthly increases of 411,000 bpd OPEC had approved for May, June and July, and 138,000 bpd in April.
Oil prices also came under pressure as US officials flagged a delay on tariffs but failed to provide details on the change.
Crude Oil Price Outlook
Following a robust upward trend from early June to mid-June, MCX crude oil prices formed a rounded peak from mid-June to June 24.
“Technically, there was sideways consolidation after the steep decline from ₹6,600 to ₹5,600, creating a bearish rectangle or flag. Right now, the price is consolidating at ₹5,690, just below the support-turned-resistance area. The price may rebound to the ₹6,000 – ₹6,200 range if it breaks above ₹5,780,” said Tejas Shigrekar, Chief Technical Research Analyst- Commodities and Currencies at Angel One Ltd.
However, if the support barrier breaks below ₹5,550, it may retest at ₹5,330, and then ₹5,000, he added.
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