Crude Oil - June 16, 2020 - HDFC Securities

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

Crude Oil prices pared previous losses with NYMEX WTI Crude oil prices rose by nearly 2% to $37.80 on Tuesday. Crude oil futures prices at MCX for the June contract were trading up by more than 3% to Rs.2872 by noon session.

Crude oil prices gained on Tuesday on demand recovery hopes and reduction in supply glut. The investors side-lined the worries over rising virus cases in the US, Beijing and Tokyo over prospects of higher demand. The few of the OPEC members have announced to cut oil term sales in order to restore oil market balance. Crude oil prices also got support from rebound in equity indices after the US Fed announced to expand the bond buying program to boost liquidity.

We expect oil prices to trade sideways to up for the day with support at $35.80 and resistance at $40. MCX Crude oil June futures has support at Rs. 2780 with resistance at Rs.2940.

Source : Equity Bulls

Keywords