Crude Oil - July 16, 2020 - Mr. Tapan Patel - Senior Analyst (Commodities), HDFC securities

Crude oil prices eased on Thursday with NYMEX WTI Crude oil prices fell by more than 1%, after gaining above $41on Wednesday. At MCX, Crude oil July futures were trading 1% down to Rs. 3061 by noon session.

Crude oil prices gained above $41 on bullish weekly inventory data after a US EIA report showed that crude oil inventories fell by 7.5 mb for week ending July 11. Crude oil prices also jumped after an OPEC and EIA report showed improved oil demand.

Crude oil prices eased after OPEC plus nations announced ease in output cut to 7.7 mb per day from August until December from current levels of 9.7 mb per day.

We expect oil prices to trade 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.3150.

Source : Equity Bulls

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