Crude Oil - August 4, 2020 - Mr. Tapan Patel - Senior Analyst (Commodities), HDFC securities

Crude oil prices pared previous gains with NYMEX WTI Crude oil prices fell by 1% to $40.50 on Tuesday. MCX Crude oil August futures were trading down by 1.70% to Rs. 3050 by noon session.

Crude oil prices were trading under pressure on fear of oversupply. Prices recovered in the evening session with gain in equity indices over positive manufacturing numbers. Russia has started to increase oil and gas output while other oil producers are also expected to increase output in August month after OPEC and its allies agreed to ease production curbs.

We expect oil prices to trade sideways to down for the day with support at $39 and resistance at $42. MCX Crude oil August futures has support at Rs. 2950 with resistance at Rs.3100.

Source : Equity Bulls

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