Crude Oil - July 22, 2020 - Mr. Tapan Patel - Senior Analyst (Commodities), HDFC securities

Crude oil prices traded higher with NYMEX WTI Crude oil prices rose above $41, up by 0.73% on Tuesday. At MCX, Crude oil August futures were trading half a percent up to Rs. 3088 by noon session.

Crude oil prices traded higher on positive global cues over stimulus expectations and vaccine hopes. The EU leaders reached agreement on a EUR750 billion ($857.979 billion) stimulus plan on Tuesday at the EU Summit while US Congress will discuss a new aid package this week. The drug making companies across the world from the UK, Germany, US and China Military research Units have signalled positive results from their potential vaccines.

We expect oil prices to trade sideways to up for the day with support at $40 and resistance at $43. MCX Crude oil August futures has support at Rs. 3020 with resistance at Rs.3160.

Source : Equity Bulls

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