Crude Oil - Aug 20, 2020 - Mr. Tapan Patel - Senior Analyst (Commodities), HDFC securities

Crude oil prices traded lower with NYMEX WTI Crude oil prices fell by nearly 1% to $42.70 on Thursday. MCX Crude oil September futures were trading down by half a percent to Rs. 3214 losing more than half a percent by noon session.

Crude oil prices traded under pressure paring the previous gains on demand growth worries and smaller than expected drawdown in weekly inventories. The US EIA data showed that weekly oil inventories fell by 1.6 mb against expectation of decline of 2.6 mb. The OPEC+ alliance urged members to adhere to limiting output as the coronavirus pandemic threatens a demand recovery.

We expect oil prices to trade sideways to down for the day with support at $41 and resistance at $43..50 MCX Crude oil September futures has support at Rs. 3140 with resistance at Rs.3250.

Source : Equity Bulls

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