Crude Oil - Oct 13, 2020 - Mr. Sriram Iyer, Senior Research Analyst - Reliance Securities

Oil prices recovered from the lows of the session on Tuesday afternoon trade in Asia taking support from robust China data.

However, concerns about supply resumption in Norway, the U.S. Gulf of Mexico and Libya kept upside capped.

China, the world's top crude oil importer, took in 11.8 million barrels per day (bpd) of oil in September, up 5.5% from 11.18 million bpd in August and 17.5% from 10.04 million bpd in September last year, customs data showed on Tuesday.

The International Energy Agency (IEA) said in its newly released annual World Energy Outlook that in its median scenario a vaccine and therapeutics could mean the global economy rebounds in 2021 and energy demand recovers by 2023.

Stoking further worries about fuel demand, lockdown curbs were being tightened in Britain and the Czech Republic to battle rising cases of COVID-19, and French Prime Minister Jean Castex said he could not rule out local lockdowns.

Technically, NYMEX WTI Crude Oil has bounced back from $39.00 levels indicating upside move up to $41.30-$42.75 levels. Support holds at $39.30-$38.60 levels.

Domestic crude on MCX rebounds from the lows of the session and trades with small gains this Tuesday afternoon trade, tracking the recovery in the international prices.

Technically, MCX Crude Oil October has bounced back from 2865 levels where it has started to trade above 21- Daily Moving Average which is placed at 2930 levels above which could see 2960-2985 levels.

Source : Equity Bulls

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