Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities
International oil prices recouped losses on Thursday after U.S. government data showed a much bigger drop than expected in crude and gasoline inventories.
Domestic crude prices also ended higher on Thursday, tracking international prices.
Still, prices still remained below early week's close, as traders remained worried that global crude supplies might swell following the collapse in talks between OPEC producers.
Energy Information Administration data showed, U.S. crude inventories fell by 6.9 million barrels last week to 445.5 million barrels vs. an expectation of a 4 million-barrel drop.
Gasoline stocks also fell by 6.1 million barrels in the week to 235.5 million barrels, vs. an expectation of a 2.2 million-barrel drop.
Concerns about the pandemic also weighed on prices. A resurgent coronavirus forced Japan to declare a state of emergency in Tokyo that will run throughout the Olympic Games.
South Korea reported its highest daily tally of COVID-19 cases.
International oil prices have started mixed this Friday morning in Asian trade.
Technically, WTI Crude Oil supports are at $71.40 and $69.80. Resistances are at $73.90 and $74.80.
Domestic crude could start higher this Friday morning tracking WTI prices.
On the domestic front, MCX Crude Oil July supports are at 5325 and 5230. Resistances are at 5485 and 5545.
NYMEX Natural gas prices closed ended higher on Thursday following a smaller than expected build in natural gas stockpiles.
Domestic natural gas ended higher on Thursday, tracking overseas prices.
According to EIA estimates, natural gas in storage was 2,574 Bcf as of Friday, July 2, 2021.
This build represents a net increase of 16 Bcf from the previous week. Expectations were for a 52 Bcf build.
The weather is expected to remain warmer than normal for the next two weeks on both the east coast and west coast of the United States, putting upward pressure on cooling demand.
NYMEX Natural Gas prices have started flat to marginally higher this Friday morning in Asian trade supported by cooling demand and falling inventories.
Technically, NYMEX Natural Gas supports are at $3.580 and $3.470. Resistances are at $3.759 and $3.829.
Domestic natural gas could start flat to marginally higher this Friday morning, tracking overseas prices.
On the domestic front, MCX Natural Gas July supports are at 267.73 and 259.97. Resistances are at 280.83 and 286.17.
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