Crude Oil - June 10, 2020 - HDFC Securities

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

Crude oil prices continued to trade down with NYMEX WTI Crude oil prices fell by 2% to $38 on Wednesday. Crude oil futures prices at MCX for the June contract were trading marginally down to Rs.2882 by noon session.

Crude oil prices traded down on fears of supply glut after Saudi Arabia and other OPEC nations opted out from the voluntary output cuts post July. The expectations of rise in weekly inventories also pressured oil prices to trade down on Wednesday. The API report showed that weekly oil inventories rose by 8.4 mb for the week ended on June 5.

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. 2790 with resistance at Rs.2930.

Source : Equity Bulls

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