Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities International and domestic oil prices crashed over 3% on Wednesday afternoon trade in Asia as a surge in U.S. crude stocks and growing coronavirus infections in the United States and Europe fanned fears of a supply glut and weaker fuel demand.
Concerns over supply disruption from Hurricane Zeta have receded and lack of a U.S. coronavirus fiscal relief package also dented investors' risk appetite and weighed on prices.
Markets will look ahead to the official crude inventory data from the government tonight.
Technically, NYMEX WTI Crude Oil has once again resumed its Bearish trend where it has given a breakdown below $38.50 levels and corrected more than 2% indicating a strong Bearish momentum in the coming session. Resistance is at $38.80-$39.40 levels & Support $38.00-$36.70 levels.
Technically, MCX Crude Oil November has given a sharp fall from its 21-DMA near 2940 levels and trading with more than 3% losses which signifies for further downside correction in the counter. Support of 200-DMA is placed at 2767 levels from where some bounced back can be expected in coming sessions. Resistance is at 2860-2940 levels & Support at 2790-2760 levels.