Crude Oil - July 7, 2020 - Mr. Tapan Patel- Senior Analyst (Commodities), HDFC securities

Crude oil prices traded lower with NYMEX WTI Crude oil prices pared previous gains to $40 a barrel on Tuesday. Crude oil futures prices at MCX for the July contract were trading nearly 1% down to Rs.3022 by noon session.

Crude oil prices traded weak on demand growth concerns over record virus cases. The recent surge in COVID19 infections has dampened demand outlook. Crude oil investors and traders ignored positive service PMI numbers from the US on fear of imposing lockdown measures.

We expect oil prices to trade sideways to down for the day with support at $39 and resistance at $42. MCX Crude oil July futures has support at Rs. 2970 with resistance at Rs.3080.

Source : Equity Bulls

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