Crude Oil - June 25, 2020 - HDFC Securities

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

Crude Oil prices extended decline with NYMEX WTI Crude oil prices fell below $38 on Thursday losing nearly 5% from last trading session. Crude oil futures prices at MCX for July contract were trading down by more than 1.50% at Rs.2844 by noon session.

Crude oil prices witnessed selling on Thursday on record inventory levels in the US and worries over fuel demand recovery. Crude oil prices declined sharply after US Department of Energy data showed a rise of 1.4 mb in weekly stockpiles. The contracted cargos from Saudi Arabia has created record surplus in US crude oil inventories. Crude oil prices also traded under pressure on concerns over fuel demand recovery with rise in virus cases across the globe.

We expect oil prices to trade sideways to down for the day with support at $36 and resistance at $40. MCX Crude oil July futures has support at Rs. 2780 with resistance at Rs.2910.

Source : Equity Bulls

Keywords