Crude Oil - June 18, 2020 - HDFC Securities

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

Crude oil prices traded lower with NYMEX WTI Crude oil prices fell below $38 on Thursday. Crude oil futures prices at MCX for the June contract were trading around half a percent down at Rs.2888 by noon session.

Crude oil prices continued downside on Thursday on worries over demand recovery as rising virus cases in China has raised questions over fuel demand growth. Beijing has cancelled flights over rise in virus cases with total tallying at 150 cases by Thursday. The record levels of US crude oil inventories also pressured oil prices after weekly oil inventories rose by 1.2 mb in the previous week.

We expect oil prices to trade sideways to up for the day with support at $37 and resistance at $40. MCX Crude oil June futures has support at Rs. 2820 with resistance at Rs.2970.

Source : Equity Bulls

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