Crude Oil - October 6, 2020 - Angel Broking

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

On Monday, WTI Crude prices surged over 5.8 percent to close at $39.2 per barrel as optimism infused after President Donald Trump's speedy recovery and hopes over further corona relief aid by U.S. supported Oil prices. Failed wage talks between the union and the Norwegian Oil and Gas Association (NOG) triggered a strike leading to the closure of Six Norwegian offshore oil and gas fields.

Oil prices were pushed higher as more number of workers went on strike over the wage issue risking an output of 330,000 barrels of oil per day. However, resurgence of the covid-19 virus raised worries over reinforcement of lockdown in major economies which undermined the outlook for Crude. The Organization of the Petroleum Exporting Countries (OPEC) is also reluctant to increase Oil production from January 2021 in an attempt to counter the weak demand.

As of today Traders can go for buy in Crude oil at 2840 with the stop loss of 2780 and for the target of 2950. We expect WTI crude oil may test $42 levels soon.

Source : Equity Bulls

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