Crude Oil - October 5, 2020 - Mr. Tapan Patel - Senior Analyst (Commodities), HDFC securities

Crude oil prices traded higher with NYMEX WTI Crude oil prices rallied by 2.5% traded near $37.50 on Monday. MCX Crude oil October futures were trading down to Rs. 2789 by noon session despite rally in global oil prices.

Crude oil prices pared losses on positive global cues on news that US President may be discharged from hospital as soon as Monday, just a few days after his positive COVID-19 test. Growing supplies and weaker demand may cap upside limited in oil prices after speculative rally.

We expect crude oil prices to trade sideways to down with support at $37 and resistance at $40. MCX Crude oil October has support at Rs. 2690, resistance at Rs. 2870.

Source : Equity Bulls

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