Crude Oil - July 1, 2020 - Mr. Tapan Patel - Senior Analyst (Commodities), HDFC securities

Crude Oil prices witnessed buying with NYMEX WTI Crude oil prices rallied by more than 3%, traded above $40 per barrel on Wednesday. Crude oil futures prices at MCX for the July contract rose by more than 1% to Rs. 3068 by noon session.

Crude oil prices traded higher on expectations of bullish weekly inventory data while positive economic data from US and China raised demand prospects. The US API data showed that weekly oil stockpiles fell by 8.2 mb which may reflect in official data due tonight. The Caixin PMI data from China came convincing at 51.2 for June against the previous 50.7.

We expect oil prices to trade sideways to up for the day with support at $38 and resistance at $42. MCX Crude oil July futures has support at Rs. 2970 with resistance at Rs.3150.

Source : Equity Bulls

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