Crude oil price today under sell off heat after US rebuttal on Iran nuclear deal

Crude oil price today: After climbing on Thursday evening, oil prices on West Texas Index (WTI) retraced to the tune of 0.25 per cent during early morning session in Asian stock market. On MCX, crude oil price today tumbled to the tune of one per cent and hit intraday low of ₹5,840 per barrel levels within few minutes of commodity market's opening bell today. In international market, WTI crude oil price is oscillating around $70.75 per barrel levels whereas Brent Crude oil price today is around $75.40 per barrel levels.

According to commodity market experts, crude oil prices have retraced from yesterday's high after the US rebuttal on media reports on possible US Iran nuclear deal. However, they maintained that there can be sharp rebound in crude oil prices after ease in fear of economic slowdown in US. They said that US jobless data has hit October 2021 highs that is enough to indicate sound health of the US economy. This has also fueled the rate-pause buzz in upcoming US Fed meeting scheduled next week. They said that WTI crude oil price today has support placed at $69 levels in international market whereas it has resistance placed at $72 per barrel levels.

On why crude oil prices today retraced in early morning session, Amit Sajeja, Vice President — Research at Motilal Oswal said, “Crude oil price ascended on Thursday after the media reports on possible US Iran nuclear deal. However, after the US rebuttal in regard to that media report, crude prices have retraced from Thursday highs. However, strong US jobless data that has surged to October 2021 highs, oil prices are expected to bounce back strongly. So, any dip in crude oil price should be seen as buying opportunity by commodity market investors."

Amit Sajeja of Motilal Oswal went on to add that US dollar and dollar index have retraced from two month high, which is expected to provide support to falling commodity prices including gold, crude and other commodities. He said that WTI crude oil price has support placed at $69 per barrel levels and one can buy around support levels for the immediate target of $72 levels.

Ease in fear of slowdown in US

On global triggers that may work in favour of crude oil prices in near term, Anuj Gupta, Vice President — Research at IIFL Securities said that strong US jobless data has eased the tension of economic slowdown in US citing, "After strong US jobless data, market is buzz about ease in economic slowdown in US and hence speculations are high about rate-pause in upcoming US Fed meeting scheduled next week. This is going to put US dollar and US treasury yield under pressure, which is enough to provide support to crude oil prices in near term."

On suggestion to commodity market investors in regard to crude oil price, Anuj Gupta said, "One can buy crude oil and keep on accumulating on every dip for the near term target of ₹6,100 per barrel levels on MCX. However, one must maintain stop loss at ₹5,700 levels while taking any fresh position in the commodity."

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.