Crude oil futures traded firm at Rs 4,778 per barrel on March 9 as participants reduced their positions as seen by the open interest. Crude oil pared gains as risk premium fade after the drone attack on a Saudi oil facility did not cause any loss of production and higher prices may slowdown demand recovery. The black gold has been trading higher than 5, 20, 50, 100, and 200 days’ moving averages on the daily chart. The Relative Strength Index (RSI) is at 71.28 which indicates positive momentum in prices. The energy failed to hold gains as market players assessed the implication of higher crude oil prices on demand as well as non-OPEC supply and general inflation expectations.

Only 7 US oil refineries out of 18 that were down due to the Texas Freeze resume normal operation as of Monday, Bloomberg reported. According to the US CFTC report, speculators for NYMEX crude futures raised the net long position by 1.4 percent after cutting it by 0.6 percent a week ago. Brent crude speculators cut net long position by 0.4 percent after raising it by 0.2 percent a week ago.

“NYMEX crude trades mixed near $65.37 per barrel recovering from early losses amid weak US dollar. Crude trades mixed as support from OPEC’s production stance, higher Chinese imports, and US stimulus progress is countered by firmer US dollar and lack of any supply disruption due to recent attack on Saudi facilities by Yemeni Houthis. Crude may witness volatile trade as traders assess the implication of OPEC’s production stance,” said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.