(Time Zone: Arizona, USA)
Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities
International oil prices are trading marginally weaker this Wednesday afternoon trade in Asia after U.S. inventory build feeds oversupply fears.
Crude inventories rose by 584,000 barrels in the week to Oct. 16 to about 490.6 million barrels, data from industry group the American Petroleum Institute showed.
Additionally, prices also remained under pressure amid increased Libyan output and rebound in COVID-19 cases in Europe and North America that has prompted renewed lockdown measures.
Technically, NYMEX WTI Crude Oil holds a multiple resistance zone near $42.00 levels below which could see some sideways to marginal downside momentum. Resistance is at $41.91-$42.86 levels & Support is at $40.60-$40.16 levels.
Domestic crude futures are trading marginally lower and could remain range bound this Wednesday, tracking overseas prices.
Markets could look to cues from the official data from EIA tonight.
Technically, MCX Crude Oil November holds a support near 2980 from where it has bounced back yesterday indicating a positive breath upto 3073-3123 levels where support holds at 3030-2980 levels.