Crude Oil - Nov 4, 2020 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

International and domestic oil prices were marginally up on Wednesday morning and afternoon trade.

Large falls in U.S. inventories, combined with likely supply cuts boosted prices.

Adding to positive investor sentiment is the likelihood of the OPEC+ maintaining current production restrictions at 7.7 million bpd rather than cutting them in January to 5.5 million bpd.

However, COVID-19 pandemic's escalation could keep demand weak and the uncertainty over today's U.S. presidential election outcome could keep upside capped.

Investors await crude oil supply data from the U.S. Energy Information Administration, due later in the day.

Technically, NYMEX WTI Crude Oil retreated from $39.00 levels and started to trade below $38.00 level, however its trading with more than 4.5% gains expected to trade on a positive note where it could trade in a range of $36.00-38.70 levels. However below $36.00 will continue downside momentum.

Technically, MCX Crude November is holding a resistance near 21 as well as 50 Daily Moving Average that is trading below 2920 could see a downside pressure. Resistance is at 2880-2936 levels. Support is at 2782-2710 levels.

Source : Equity Bulls

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