Crude Oil - July 15, 2020 - Mr. Tapan Patel- Senior Analyst (Commodities), HDFC securities

Crude oil prices traded higher with NYMEX WTI Crude oil prices rose above $40 a barrel, gaining more than 1% on Wednesday. Crude oil futures prices at MCX for the July contract were trading up by 1% to Rs.3075 by noon session.

Crude oil prices witnessed recovery after US API data showed that weekly oil stockpiles fell by 8.3 mb against expectations of decline of 2.1 mb. The traders and investors will eye for the comments from OPEC awaiting decision from Joint Ministerial Monitoring Committee (JMMC) on output cut quota.

We expect oil prices to trade up for the day with support at $39 and resistance at $42. MCX Crude oil July futures has support at Rs. 2970 with resistance at Rs.3150.