Crude Oil - May 11, 2020 - HDFC Securities

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

Crude oil prices traded weak on Monday as NYMEX WTI Crude oil traded pared some previous gains traded $24 , down by 2.47%. Crude oil futures prices at MCX for May contract held steady range near Rs.1840 by noon session.

Crude oil prices witnessed decline on persisting over supplied market. Crude oil prices traded under pressure on demand growth concerns with second wave of COVID19 cases in China, Japan and South Korea.

The lesser than expected rise in weekly oil inventories and output cut from major producers have supported oil prices to trade firm in last week. The US crude oil rig count fell to the record lows to 374 by May 8.

The CFTC data showed that speculative long positions in Crude oil rose by 16520 during the previous week.

We expect oil prices to witness resistance near $27 and support at $22. MCX Crude oil May futures has support at Rs. 1700 with resistance at Rs.1950.

Source : Equity Bulls

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