Crude Oil - June 1, 2020 - HDFC Securities

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

Crude oil prices were little changed with NYMEX WTI Crude oil prices were trading marginal down to $35.30 on Monday. On contrary, Crude oil futures prices at MCX for June contract rallied by 4% to Rs.2660 by noon session reflecting Friday's overnight gains of NYMEX WTI Crude oil.

Crude oil were trading off the recent highs on Monday as rising US China tension and violent public protest in US cities weighed on oil prices. The spreading public protest over a death of George Floyd has deteriorated investment sentiments in top crude oil consumer nations.

Crude oil prices have kept the upper trading range on expectations of extension in output cuts from OPEC plus nations. OPEC plus nations may hold meeting in coming week by 8-9 June to discuss and review output cuts. Saudia Arabia has already proposed extension of output cuts till the end of the year.

We expect oil prices to trade sideways to up for the day with support at $32 and resistance at $38. MCX Crude oil June futures has support at Rs. 2600 with resistance at Rs.2750.

Source : Equity Bulls

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