Crude Oil - June 15, 2020 - Mr. Tapan Patel- Senior Analyst (Commodities), HDFC securities

Crude Oil prices traded lower for the third consecutive with NYMEX WTI Crude oil prices fell by more than 2% to $35.44 on Monday. Crude oil futures prices at MCX for the June contract were trading down by nearly 2% to Rs.2687 by noon session.

Crude oil prices continued downside on Monday on demand growth worries with rise in cases in the US, Beijing and Tokyo. The investors turned cautious over the fear of a second wave of virus infections which led to selling in crude oil prices along with equity indices. Crude oil prices also traded under pressure on disappointing industrial production data from China which came at 4.4% for May against a forecast of 5%.

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. 2610 with resistance at Rs.2760.

Source : Equity Bulls

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