Crude Oil - June 3, 2020 - HDFC Securities

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

Crude oil prices traded higher with NYMEX WTI Crude oil prices gained by nearly 2% to $37.50 on Wednesday. Crude oil futures prices at MCX for June contract rallied by more than 3% to Rs.2834 by noon session following the gains of NYMEX WTI Crude oil.

Crude oil prices traded higher on growing prospects of extension of OPEC plus output cut. The demand recovery from China also pushed oil prices higher with reports showing China achieving 90% oil demand recovery.

OPEC plus nations may hold meeting in coming week by 8-9 June to discuss and review output cuts. Saudia Arabia has already proposed extension of output cuts till the end of the year provided Russia agrees to it.

We expect oil prices to trade higher for the day with support at $36 and resistance at $38 and $40. MCX Crude oil June futures has support at Rs. 2730 with resistance at Rs.2890.

Source : Equity Bulls

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