Crude Oil - June 8, 2020 - HDFC Securities

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

Crude oil prices traded higher with NYMEX WTI Crude oil prices rose by 1% to $40 on Monday. Crude oil futures prices at MCX for June contract rallied by 1% to Rs.3023 by noon session.

Crude oil prices extended gains on Monday with prices touched $40 after OPEC plus nations agreed to extend oil output cuts till the end of July 2020. The record oil imports from China also supported prices to trade higher as oil imports from China rose to all time high at 11.3 mb per day in the month of May.

The ease of lockdown measures has improved fuel demand outlook which has supported oil prices to trade higher in recent weeks. The extension of output cuts from OPEC plus nations will balance oil market further removing supply glut.

We expect oil prices to trade higher for the day with support at $38 and resistance at $43. MCX Crude oil June futures has support at Rs. 2930 with resistance at Rs.3110.

Source : Equity Bulls

Keywords