Crude Oil - July 27, 2020 - Mr. Tapan Patel - Senior Analyst (Commodities), HDFC securities

Crude oil prices traded steadied with NYMEX WTI Crude oil prices kept the narrow trading range near $41 on Monday. At MCX, Crude oil August futures were trading half a percent up to Rs. 3090 by noon session.

Crude oil prices traded under pressure on demand growth concerns as escalation in tensions between US and China will lead to further deterioration in trade activities and economic growth. The US weekly oil rig count rose by 1 to 181 rigs which is the first hike since March. The rise in rig count may signal the end of decline in US production.

We expect oil prices to trade sideways to down 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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