Crude Oil - Oct 22, 2020 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

International oil prices are trading extremely range bound and remained volaille in in Thursday's afternoon trade in Asia.

Oil prices were under pressure after the most recent data released from the U.S. Energy Information Administration (EIA) showed a smaller-than-anticipated draw in U.S. oil stockpiles and build in gasoline inventories adding to concerns of market saturation amid weak demand.

However, hopes over additional coronavirus stimulus aid package and OPEC's compliance efforts on output capped downside.

Markets could look to cues from the jobless claims and existing home sales data tonight for the pace of the economic recovery.

Technically, NYMEX WTI Crude Oil gave a sharp fall yesterday where it halted its downside momentum near $39.70 levels indicating some consolidation in a range of $39.00-$40.60 levels.

Domestic oil prices tracking international prices and remained range bound this Thursday's afternoon trade.

Technically, MCX Crude Oil November did not manage to sustain above 3000 levels where it plunged below 50 as well as 100 Daily Moving Average. However it is holding a support of 2950 levels. It is likely to trade in a range of 2940-3010 levels.

Source : Equity Bulls

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