Crude Oil - May 15, 2020 - HDFC Securities

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

Crude oil prices continued upside on Friday with NYMEX WTI Crude oil rallied by nearly 3% to $28.30. Crude oil futures prices at MCX for May contract rose by 4% to Rs.2140 by noon session.

Crude oil prices rallied to three weeks high on supportive fundamentals. The fall in US weekly inventories and output cut effects from OPEC plus nations supported crude oil prices to trade higher.

Crude oil prices traded higher with positive industrial data from China and expectations of more stimulus from US. Crude oil prices got additional support after the IEA said that global oil demand is improving stronger than expected.

We expect oil prices to trade higher as prices have breached near term resistance at $27. The next resistance lies near $30 and support at $27. MCX Crude oil May futures has support at Rs. 2080 with resistance at Rs.2210.

Source : Equity Bulls

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