Crude oil prices eased in the domestic futures market on Thursday, falling 2% after snapping three sessions of gains. The decline came amid weak global cues and after Israel and Lebanon agreed to a conditional ceasefire.
Price Movement
On the Multi Commodity Exchange (MCX), crude oil futures for June delivery fell by Rs 100, or 2%, to Rs 4,900 per barrel, with a trading volume of 12,345 lots. The contract had gained nearly 5% in the previous three sessions.
Global Factors
Internationally, West Texas Intermediate (WTI) crude oil prices dropped 1.8% to $72.50 per barrel, while Brent crude fell 1.6% to $76.80 per barrel. The decline was attributed to demand concerns and a stronger US dollar.
The conditional ceasefire agreement between Israel and Lebanon eased geopolitical tensions in the Middle East, reducing the risk premium on oil prices. However, traders remained cautious about the implementation of the truce.
Market Outlook
Analysts noted that the oil market remains volatile due to uncertainty over global demand, particularly from China, and the outcome of OPEC+ meetings. The next OPEC+ meeting is scheduled for June 10, where production quotas will be discussed.
Domestic traders are advised to monitor global cues and geopolitical developments for further price direction. Support for crude oil futures is seen at Rs 4,800 per barrel, while resistance is at Rs 5,000 per barrel.
