Crude Oil - June 9, 2020 - HDFC Securities

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

Crude oil prices traded lower with NYMEX WTI Crude oil prices fell by 2% to $37.40 on Tuesday. Crude oil futures prices at MCX for the June contract were trading down by 2% to Rs.2825 by noon session.

Crude oil prices pared previous gains on Tuesday on concerns over non compliance of the output cut deal of OPEC plus nations. The announcement from Saudi Arabia also pressured oil prices after Saudi Energy minister said that Saudi Arabia along with Kuwait and UAE won't continue an additional output cut of 1=18 mb per day.

The ease of lockdown measures has improved fuel demand outlook which has supported oil prices to trade higher in recent weeks.

We expect oil prices to trade sideways to down for the day with support at $36 and resistance at $40. MCX Crude oil June futures has support at Rs. 2750 with resistance at Rs.2910.

Source : Equity Bulls

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