Crude Oil - Commodity Snippet - Dec 2, 2020 - Reliance Securities

Oil prices ended weak on Tuesday as lack of clarity from the OPEC+ meeting kept markets nervous.

There was no consensus yet among OPEC+ producers. The group has been considering extending existing cuts of about 8% of global demand into the first months of 2021. Russia, meanwhile, backs a gradual increase.

Meanwhile, industry data from the American Petroleum Institute showed U.S. crude inventories rose by 4.1 million barrels last week, compared with analysts' expectations in a Reuters poll for a draw of 2.4 million barrels and weighed on prices.

Domestic crude ended lower on Tuesday, tracking global weakness.

International and Domestic Outlook

Oil prices have started marginally in the red ahead of the OPEC+ decision on Thursday. In the intraday session, markets could consolidate ahead of the official crude inventory data expected tonight.

Technically, WTI Crude Oil is has given a correction from $45.75 levels where it is likely to continue its Bearish trend up to $43.33-$41.80 levels. Resistance is at $44.90-$45.50 levels.

Domestic crude could start flat to marginally lower this Wednesday morning, tracking international prices.

Technically, MCX Crude December break below 3300 levels where below 3250 could further see downside pressure up to 3230-3185 levels. Resistance is at 3302-3353 levels.

Source : Equity Bulls

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