Crude Oil - May 22, 2020 - HDFC Securities

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

Crude oil prices witnessed selling on Friday with NYMEX WTI Crude oil traded fell by more than 6% to $31.80. Crude oil futures prices at MCX for June contract declined by 5% to Rs.2427 by noon session.

Crude oil prices declined from two months highs after China announced not to release economic forecast numbers for the year. Crude oil prices fell on demand growth worries from one of the major consumer.

The weak job market numbers from US and rising tensions between US and China also pressured priced to trade lower along with equity indices.

The output cut effects and opening of lockdowns in several countries will lift fuel and industrial demand for oil gradually over the long term.

We expect oil prices to trade lower for the day with support at $30 and resistance at $34. MCX Crude oil June futures has support at Rs. 2320 with resistance at Rs.2480.

Source : Equity Bulls

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