Crude Oil - 30th September 2020 - Angel Broking

Mr. Anuj Gupta - DVP - Commodities and Currencies Research, Angel Broking Ltd

On Tuesday, WTI Crude prices ended lower by 3.23 percent to close at $39.3 per barrel while on MCX Crude oil prices corrected by 3.75% to 2877 levels as widening impact of the pandemic continued to weigh on the demand prospects for Crude. Resurgence of the covid-19 virus is a major setback for the global Oil market. Alarming increase in Covid-19 cases raised worries over reinforcement of lockdown in major economies which undermined the outlook for Crude. Moreover, rising exports from Libya and Iran despite the production cuts by the Organization of the Petroleum Exporting (OPEC) also weighed on the prices. However, hopes of further stimulus infusion by the U.S. as the democrats and the white house officials work on striking a deal limited the fall in Crude prices.

Oil prices might be under pressure as bleak economic outlook reflecting the resurgence of covid-19 virus undermined the outlook for Crude. On the MCX, oil prices are expected to trade lower today.

As of today Traders can go for sell in Crude oil at 2930 with the stop loss of 3010 and for the target of 2800. We expect WTI crude oil may test $36 levels soon.

Source : Equity Bulls

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