MCX Crude Oil Price Today: Crude oil prices rose by 0.84%, closing at ₹5,742, amid rising concerns over potential supply disruptions due to escalating tensions in the Middle East. Fears of Iran becoming involved in the conflict have heightened worries about broader instability.


Israel’s increased military actions against Hezbollah and Hamas leaders in Lebanon, as well as Houthi groups in Yemen, have further intensified these concerns. However, the demand outlook remains mixed, with China experiencing a contraction in manufacturing activity for the fifth consecutive month in September and a significant slowdown in its services sector.

On the other hand, the potential recovery of Libyan oil production is putting downward pressure on prices. The approval of a new central bank governor by Libya’s eastern-based parliament could help resolve the ongoing oil production crisis.


Meanwhile, OPEC maintains an optimistic long-term oil demand outlook, forecasting it to reach 120.1 million barrels per day by mid-century, exceeding the International Energy Agency’s (IEA) estimates. In the U.S., crude oil inventories decreased by 4.471 million barrels for the week ending September 20, 2024. Surpassing market expectations of a 1.4 million barrel drop. Gasoline and distillate stockpiles also declined more than anticipated, further supporting prices.

From a technical perspective, the crude oil market is experiencing short covering, with open interest decreasing by 7.32% to settle at 17,574 contracts. Prices increased by ₹48, with immediate support observed at ₹5,676 and a possible test of ₹5,609 if downward pressure continues.


On the upside, resistance is expected at ₹5,817, and a breakout beyond this level could drive prices towards ₹5,891, indicating a cautious but potentially bullish outlook for the near term.

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