Crude Oil - May 5, 2020 - HDFC Securities

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

Crude oil prices rallied on Tuesday as NYMEX WTI Crude oil pared precious losses gaining nearly 9% to $22.30. Crude oil futures prices at MCX for May contract rallied by 10% to Rs.1710 by noon session.

Crude oil prices witnessed sharp recovery on demand growth prospects as some of the counties have eased lockdown. Prices are trading higher expecting rise in fuel demand as some of US states, several countries in Europe, India and Thailand have started easing lockdown.

The falling US oil rig counts and output cut from OPEC plus nations may support current recovery in crude oil prices.

We expect oil prices to witness resistance near $24 and support at $18. MCX Crude oil May futures has support at Rs. 1580 with resistance at Rs.1850.

Source : Equity Bulls

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