Crude Oil - May 12, 2020 - HDFC Securities

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

Crude oil prices traded higher on Tuesday with NYMEX WTI Crude oil rallied by more than 2% to $24.70. Crude oil futures prices at MCX for May contract rose by nearly 2% to Rs.1880 by noon session.

Crude oil prices witnessed recovery after Saudi Arabia announced deeper output cuts to help in reducing supply overhang. Saudi Arabia pledged to cut oil output by 1 mb per day in June, reducing the total oil production to 7.5 mb per day.

The worries over second wave of coronavirus infections in China and South Korea may limit upside in the prices.

We expect oil prices to witness resistance near $27 and support at $22. MCX Crude oil May futures has support at Rs. 1700 with resistance at Rs.1950.

Source : Equity Bulls

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