Crude Oil - May 19, 2020 - HDFC Securities

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

Crude oil prices traded positive for the fourth day in the trot with NYMEX WTI Crude oil gained by nearly 1% to $32. Crude oil futures prices at MCX for June contract rose by 1% to Rs.2428 by noon session.

Crude oil prices gained on positive global cues with rise in equity indices on vaccine hopes. The investment sentiments improved after US company Moderna reported successful phase 1 trial for coronavirus vaccine.

The output cut effects from major oil producers and signs of demand recovery with ease in lockdown measured has supported crude oil prices to trade higher.

The NYMEX WTI June contract is set to expire on 19th May 2020 where many traders are expecting high volatility in the prices. However, we do not expect the previous expiry like situation this time as many traders have opt for early rollover to next contract.

We expect oil prices to trade higher with support at $30 and resistance at $34. MCX Crude oil June futures has support at Rs. 2330 with resistance at Rs.2510.

Source : Equity Bulls

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