Crude Oil - May 14, 2020 - HDFC Securities

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

Crude oil prices rallied on Thursday with NYMEX WTI Crude oil rose by more than 2% to $25. Crude oil futures prices at MCX for May contract also rose by 2% to Rs.1951 by noon session.

Crude oil prices trimmed previous losses and rallied above $25 on surprise draw down in weekly inventories. The EIA report showed that US crude oil inventories fell by 0.74 mb against expectations of rise of 4.1 mb.

The worries over second wave of coronavirus infections and warning of deeper recession from US Fed Chairman may keep upside limited in oil prices with fall in equity indices.

We expect oil prices to witness resistance near $27 and support at $22. MCX Crude oil May futures has support at Rs. 1890 with resistance at Rs.2010.

Source : Equity Bulls

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