Crude Oil - Aug 3, 2020 - Mr. Tapan Patel - Senior Analyst - Commodities, HDFC securities

Crude oil prices traded lower with NYMEX WTI Crude oil prices fell by 1% to below $40 on Monday. MCX Crude oil August futures were trading down by more than 1% to Rs. 2982 by noon session.

Crude oil prices traded under pressure on demand growth concerns amid slower economic growth and higher supplies. The oil production from OPEC is expected to rise by 1 mb per day for the month of July as Saudi Arabia and other Gulf members ended their voluntary supply curbs. The total US oil rig count rose resumed decline with active oil rigs fell by 1 to 180 in last week as per data published by Baker Hughes. The CFTC data showed that NYMEX WTI net long positions fell by 15817 lots to 11 week low.

We expect oil prices to trade sideways to down for the day with support at $39 and resistance at $41. MCX Crude oil August futures has support at Rs. 2930 with resistance at Rs.3020.

Source : Equity Bulls

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