Crude Oil - June 19, 2020 Mr. Tapan Patel - Senior Analyst (Commodities), HDFC securities

Crude oil prices traded higher with NYMEX WTI Crude oil prices rallied by more than 3% to $40 on Friday. Crude oil futures prices at MCX for the July contract were trading with 3% gains at Rs.3086 by noon session.

Crude oil prices witnessed strong recovery on Friday on higher demand prospects with effective output cuts from OPEC plus nations. Crude oil prices gained on expectations of stricter compliance to the output cuts from OPEC members. Iraq and Kazakhstan agreed to compensate for the over production in meetings with other members. The global oil demand has witnessed steady recovery with ease of lockdown measures and reopening of the economic activities.

We expect oil prices to trade up for the day with support at $38 and resistance at $43. MCX Crude oil July futures has support at Rs. 2980 with resistance at Rs.3210.

Source : Equity Bulls

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