Crude Oil - May 13, 2020 - HDFC Securities

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

Crude oil prices traded lower on Wednesday with NYMEX WTI Crude oil fell by more than 1% to $25.40. Crude oil futures prices at MCX for May contract declined by nearly 1% to Rs.1930 by noon session.

Crude oil prices pared previous gains with rise in inventories and demand growth worries on second wave of COVID19 outbreak.

Crude oil prices declined after US API report showed rose in crude oil inventories by 7.6 mb in last week.

The worries over second wave of coronavirus infections in China and South Korea also pressured oil prices with other riskier assets.

We expect oil prices to witness resistance near $27 and support at $22. MCX Crude oil May futures has support at Rs. 1830 with resistance at Rs.1970.

Source : Equity Bulls

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