Crude Oil - Dec 16, 2020 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

International oil prices are trading marginally weak this early Wednesday afternoon trade weighed down by a surprise gain in crude oil inventories in the United States.

Crude inventories rose by 2 million barrels in the week to Dec. 11 to about 495 million barrels, according to industry group API. Official data due tonight and a poll suggests that the market is expecting a draw of 1.9 million barrels.

Markets sentiments also remained weak as investors continued to worry about demand for fuel amid tighter lockdowns in Europe to curb the virus from spreading further.

After OPEC's weak demand report the International Energy Agency (IEA) also warned of weak fuel demand for 2021. The IEA revised down its estimates for oil demand this year by 50,000 barrels per day (bpd) and for next year by 170,000 bpd, citing scarce jet fuel use as fewer people travel by air.

Technically, WTI Crude Oil is trading on a positive note above $47.00 levels further upside rally could be seen up to $48.10-$48.60 levels. Support is at $47.10-$46.40 levels.

Domestic crude oil prices are trading flat this early Wednesday afternoon trade.

Technically, MCX Crude December is sustaining above 3480 levels indicating further positive momentum to continue for the rest of the session. Resistance is at 3515-3560 levels. Support is at 3450-3395 levels.

Strategy for Crude Oil December will be Buy 3450 SL 3410 TGT 3525.

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Source : Equity Bulls

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