Crude Oil - July 10, 2020 - Mr. Tapan Patel- Senior Analyst (Commodities), HDFC securities

Crude oil prices traded lower with NYMEX WTI Crude oil prices fell $40 a barrel, losing more than 1% on Friday. Crude oil futures prices at MCX for the July contract were trading down by nearly 1.5% to Rs.2940 by noon session.

Crude oil prices traded under pressure on demand growth concerns and supply pressure due to surge in weekly inventories. The fear of restoring lockdown measures due to record virus cases has pressured oil prices with worries over fuel demand growth. The lack of clarity over extension of output cut deal from OPEC plus nations has also kept investors in dilemma over future trends.

We expect oil prices to trade down for the day with support at $37 and resistance at $41. MCX Crude oil July futures has support at Rs. 2860 with resistance at Rs.3020.