Crude Oil - Commodity Snippet - Dec 8, 2020 - Reliance Securities

International oil prices fell on Monday as surging coronavirus cases and heightened tensions between the United States and China offset the positive impact from an OPEC+ deal on output cuts.

Prices came under pressure after Reuters reported that the United States was preparing to impose sanctions on at least a dozen Chinese officials over their alleged role in Beijing's disqualification of elected opposition legislators in Hong Kong.

Globally, a surge in coronavirus cases has forced a series of renewed lockdowns, including strict measures in the U.S. state of California and in Germany and South Korea.

U.S. gasoline consumption fell during the Thanksgiving holiday week to the lowest in more than 20 years, OPIS said, as fewer Americans travelled during the pandemic.

Domestic crude ended lower on Monday, tracking weak overseas prices.

International and Domestic Outlook

International oil prices have started weak this Tuesday morning in Asian trade.

Technically, WTI Crude Oil could consolidate in a range of $44.80-$46.45 levels in coming session. In addition breakout above $46.00 could see further upside movement where prices hold a strong support near $44.50 levels.

Domestic crude could start weaker this Tuesday morning, tracking international prices.

Technically, MCX Crude December is trading above 3400 levels could continue its strong upside momentum upto 3480-3575 levels & support holds at 3390-3310.

Source : Equity Bulls

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