Crude Oil - Aug 19, 2020 - Mr. Tapan Patel- Senior Analyst (Commodities), HDFC securities

Crude oil prices traded lower with NYMEX WTI Crude oil prices fell by 1% to $42.64 on Wednesday. MCX Crude oil September futures were trading down to Rs. 3195 losing more than half a percent by noon session.

Crude oil prices traded under pressure after prices failed to break $43 over demand recovery concerns from the US. The US API inventory report showed that US weekly oil inventories fell by 4.26 mb against expectation of decline of 2.9 mb in last week. The OPEC plus nations' JMMC meeting is scheduled today where members are expected to vowed for stronger compliance to the oil output quota.

We expect oil prices to trade sideways to down for the day with support at $41 and resistance at $43. MCX Crude oil September futures has support at Rs. 3140 with resistance at Rs.3250.

Source : Equity Bulls

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