Crude Oil - Oct 19, 2020 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

International Oil prices fell on Monday afternoon trade in Asia after reports that China's third-quarter economic growth did not rise as much as expected, raising concerns that surging coronavirus cases globally are impacting demand for fuel.

The world's second-largest economy in the third quarter expanded by 4.9% from a year earlier, missing expectations, data showed.

Prices were also weighed down after last week's meeting of the OPEC+ Joint Technical Committee reported a gloomier fuel demand outlook because of fears that a prolonged second wave of the COVID-19 pandemic.

Markets will look to cues from the Joint Ministerial Monitoring Committee (JMMC) meeting of the OPEC+ group later tonight.

Technically, NYMEX WTI Crude is holding well above 50-DMA which is placed at $40.65 levels indicating sideways to upside movement in coming sessions. Resistance is at $41.55-$42.80 levels and Support holds at $40.30-$39.51 levels.

Domestic oil prices were trading with small losses this Monday afternoon trade tracking weak overseas prices.

Technically, MCX Crude Oil October holds a resistance near its 100-Days Moving Average which is placed at 3003 levels above which could see an upside bounce up to 3068-3090 levels where downside support is at 2940-2910 levels.

Source : Equity Bulls

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