Crude Oil - Jan 6, 2021 - Mr. Tapan Patel - Senior Analyst (Commodities), HDFC Securities

Crude oil prices traded weak with benchmark NYMEX WTI crude oil fell below $50 per barrel on Wednesday after surging 5% in previous session. MCX Crude oil January futures were trading down to Rs. 3653 by noon session.

Crude oil prices witnessed selling with fall in US equity indices after democrats won one of the two seats in the state of Georgia. Crude oil prices may get support after Saudi Arabia pledged to cut oil output by 1 mb per day voluntarily in February and March while OPEC plus nations kept output quota unchanged. The traders and investors may react to the US equity indices over result of the second seat of the state of Georgia and official inventory data in evening session.

We expect crude oil prices to trade sideways to down with support at $48 and resistance at $51. MCX Crude oil January has support at Rs.3580, resistance at Rs.3720.