Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities International and domestic oil prices pause sell-off this Tuesday afternoon session as the U.S. Gulf Coast energy sector prepared for another storm.
Oil producers halted offshore production in the Gulf of Mexico as a storm strengthened and looked likely to threaten the United States as a hurricane.
Upside remained capped as coronavirus cases continued to surge in the United States and Europe and could dent demand for the fuel.
Upside was also capped by Libya's rebound in crude production which raised fears of oversupply.
Markets will look ahead to inventory data from API tonight and EIA tomorrow.
Technically, NYMEX WTI Crude Oil has halted its downside momentum where it is sustaining above $38.40 levels indicating some sideways momentum where it can trade in a range of $38.07-$39.05 levels.
MCX Crude Oil November is trading below 21 as well as 50 Daily Moving Average where below 2840 could see 2760-2700 levels. Resistance is at 2920 levels
Strategy for Crude Oil November for the rest of the session is Sell in the range 2880-2890 of with the Stoploss 2930 and a Target of 2780.