Crude Oil - June 12, 2020 Mr. Tapan Patel - Senior Analyst, Commodities - HDFC securities

Crude oil prices continued downside with NYMEX WTI Crude oil prices fell by nearly 2% to $35.75 on Friday. Crude oil futures prices at MCX for the June contract were trading down by more than 2% to Rs.2707 by noon session.

Crude oil prices extended declines on Friday as fears of a second wave of virus infections in the US triggered sell off in riskier assets. The total US virus cases surpassed 2 million with jumps in cases in Florida, Texas, and Arizona. The rise in virus cases dampened investment sentiments with fear of another partial lockdown. The selling in equity indices in record inventory levels dragged oil prices below $36 on Friday.

We expect oil prices to trade down for the day with support at $34 and resistance at $38. MCX Crude oil June futures has support at Rs. 2630 with resistance at Rs.2780.

Source : Equity Bulls

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