Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities
International oil prices were extremely volatile and trading in small range down on Wednesday afternoon trade in Asia.
Upside remained capped over ongoing concerns that fuel demand will continue to tumble as the number of COVID-19 cases continues to rise in Europe.
Additionally, both the IEA and OPEC forecasted bleak demand outlook for oil.
IEA said that demand for oil is set to fall by 8% in 2020 and a slow economic recovery from the pandemic threatens to delay a full rebound in world energy demand to 2025.
Meanwhile, OPEC said oil demand will rise by 6.54 million bpd next year to 96.84 million bpd, 80,000 bpd less than expected a month ago.
Looking ahead, upside could remain limited as supply outweighs demand.
Markets will await cues from weekly crude inventories from API and EIA today and tomorrow respectively.
Technically, NYMEX WTI Crude is holding near 100-Days Moving Average which is placed at $40.08 levels above which could see a bounced back move up to $40.60-$41.47 levels. Downside $39.90-$39.00 holds a support.
Domestic crude on MCX is trading with small losses this Wednesday afternoon trade.
Technically, MCX Crude Oil October is trading on a positive note above 21-Daily Moving Average which is placed at 2936 levels where it can halt its upside move near 2990 levels indicating a sideways momentum in the range of 2910-2990 levels.