Crude Oil - May 27, 2020 - HDFC Securities

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

Crude oil prices traded weak with NYMEX WTI Crude oil prices fell by more than 1% to $33.75 on Wednesday. Crude oil futures prices at MCX for June contract were trading down to Rs.2563 by noon session.

Crude oil prices witnessed decline on demand growth worries with rising tensions in US and China. The protest in Hong Kong over New National Security Law from China has drawn attention of US. The US Presidential is expected to response on the issue by the week. However, China warned of counter retaliation on any measures from US.

Crude oil prices are trading down on concerns of the pace of demand recovery even after opening of the lockdown measures.

We expect oil prices to trade sideways to down for the day with support at $32 and resistance at $36. MCX Crude oil June futures has support at Rs. 2480 with resistance at Rs.2650.

Source : Equity Bulls

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