Crude Oil - July 8, 2020 - Mr. Tapan Patel - Senior Analyst (Commodities), HDFC securities

Crude oil prices traded steady with NYMEX WTI Crude oil prices held the narrow trading range near $40 a barrel on Wednesday. Crude oil futures prices at MCX for the July contract were trading marginal down to Rs.3052 by noon session.

Crude oil prices traded under pressure on demand growth concerns over record virus cases. The recent surge in COVID19 infections has dampened demand outlook on fear of a second wave of coronavirus infections in the US and other parts of the world. Crude oil prices also traded weak on expectations of inventory build after a US API report showed a rise of crude oil supplies by 2 mb in last week.

We expect oil prices to trade sideways to down for the day with support at $39 and resistance at $42. MCX Crude oil July futures has support at Rs. 2970 with resistance at Rs.3110.

Source : Equity Bulls

Keywords