Crude Oil - Commodity Snippet - Dec 1, 2020 - Reliance Securities

Oil prices was mixed on Friday with Brent ending higher and WTI ending with small gains.

Both WTI and Brent prices were weak on Monday as no clarity emerged from the OPEC+ meeting as talks were postponed for December 03rd due to disagreements.

Reuters reported that key players were still in disagreement on how much oil they should pump amid weak demand.

Meanwhile, according to the Energy Information Administration's monthly report crude oil production in the United States rose in September to 10.860 million barrels per day on average.

The report added that September's oil production was up 286,000 barrels per day on average compared to the month prior, but still down significantly by 1.635 million bpd from September 2019.

Domestic crude ended marginally higher on Friday, tracking WTI. However, prices ended in the red on Monday, tracking weakness in the overseas prices.

International and Domestic Outlook

Oil prices have started mixed with Brent starting flat and WTI starting lower this Tuesday morning in Asian trade.

Technically, WTI Crude Oil is sustaining below $46.00 levels where breakdown below $44 could see a sharp correction up to $42.50-$40.80 levels.

Domestic crude could start flat to marginally lower this Tuesday morning, tracking WTI prices.

Technically, MCX Crude December did not manage to cross above 3400 levels indicating for a Bearish momentum below 3300 levels. Support is at 3260-3170 levels and Resistance at 3345-3370 levels.

Source : Equity Bulls

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