Crude Oil - May 4, 2020 - HDFC Securities

Mr. Tapan Patel - Senior Analyst (Commodities), HDFC securities

Crude oil prices started the week in negative trend with NYMEX WTI Crude oil losses nearly 7% to $18 on Monday. Crude oil futures prices at MCX for May contract also declined by 7% to Rs.1400 by noon session.

Crude oil prices pared some of the previous gains on demand growth worries with heightened tensions on US - China trade war after US signalled to impose tariffs on China.

Crude oil prices recovered last week on expectations that OPEC output cut and ease in lockdown measures will restore oil market balance.

US crude oil rigs declined by 53 to 325, the lowest since June 2016 in previous week.

We expect oil prices to witness resistance near $20 and support at $10. The concerns over new tariffs on China may pressure oil prices to trade lower. MCX Crude oil May futures has support at Rs. 1000 with resistance at Rs. 1700.

Source : Equity Bulls

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