Crude Oil - July 9, 2020 - Mr. Tapan Patel- Senior Analyst (Commodities), HDFC securities

Crude oil prices held a steady range with NYMEX WTI Crude oil prices traded marginal down near $40 a barrel on Thursday. Crude oil futures prices at MCX for the July contract witnessed range bound trading near Rs.3060 by noon session.

Crude oil prices traded under pressure on demand growth concerns and supply pressure due to surge in weekly inventories. Crude oil prices weakened after US weekly crude oil inventories rose by 5.7 mb in last week against the forecast of 3.2 mb of drawdown. The lack of clarity over extension of output cut deal from OPEC plus nations has also kept investors in dilemma over future trends.

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.3110.

Source : Equity Bulls

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