Crude Oil - May 26, 2020 - HDFC Securities

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

Crude oil prices traded higher with NYMEX WTI Crude oil rallied by more than 3% to $34.28 on Tuesday. Crude oil futures prices at MCX for June contract rose by 1% to Rs.2610 by noon session.

Crude oil prices traded higher returning from the long weekend after reporting fourth straight weekly gain. Crude oil prices gained on improved demand outlook and strong equity indices on vaccine hopes and lift in lockdown measures from major economies.

The output cut effects have so far supported oil market to gain stability. Russia with its best compliance has reported its oil dropping to 8.5 mb per day fro May and June.

We expect oil prices to trade higher for the day with support at $32 and resistance at $37. MCX Crude oil June futures has support at Rs. 2480 with resistance at Rs.2720.

Source : Equity Bulls

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