Crude Oil - June 11, 2020 - HDFC Securities

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

Crude oil prices extended declines for the second day with NYMEX WTI Crude oil prices fell by 3% to $38 on Thursday. Crude oil futures prices at MCX for the June contract were trading down by 2% to Rs.2900 by noon session.

Crude oil prices traded down on weak global cues after the US FED forecasted slower economic recovery for the year. The US FED kept key interest rates unchanged at near zero while it forecasted that the economy may contract by 6.5% for the year 2020. The US department of energy data showed that US stockpiles rose to record with inventories rose by 5.7 mb to 538.1 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.2940.

Source : Equity Bulls

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