Crude Oil - Nov 17, 2020 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

International oil prices rose on Monday as Moderna Inc said its experimental vaccine was 94.5% effective in preventing COVID-19.

Upside was capped amid concern over global demand as COVID-19 outbreaks continue around the world.

Prices did find some support after data showed that China's crude oil throughput rose 2.6% in October from a year earlier to its highest-ever level as fuel demand firmed on strong holiday travel.

The country processed 59.82 million tonnes of crude oil last month, equivalent to 14.09 million barrels per day (bpd), compared with 13.96 million bpd in September.

Prices were also buoyed by data showing a rebound in Japan, after data showed that the country's GDP expanded an annualised 21.4% in July-September, beating a median market forecast for an 18.9% gain.

Domestic crude ended rose on Monday, tracking international prices.

International and Domestic Outlook

International oil prices have started marginally higher this Monday morning in Asian trade ahead of the important OPEC+ meeting today.

OPEC+ is set to hold a ministerial committee meeting today that could recommend changes to production quotas when all the ministers meet on Nov. 30 and Dec. 1.

CFTC data showed that speculators raised their net long U.S. crude futures and options positions in the week to November 10, by 22,956 contracts to 273,981.

Technically, WTI Crude Oil yesterday traded on a positive note in a range of $40.38-$40.42 level. Resistance is at $41.80-$42.70 and Support is at $41.10-$40.57 levels.

Domestic crude could start marginally higher this Monday morning, tracking international prices.

Technically, MCX Crude November is holding above a 3050 where it resisted to 3134 levels indicating sideways to marginal upside momentum. Resistance is at 3120-3167 levels and Support is at 3050-3010 levels.

Source : Equity Bulls

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