Crude Oil - Dec 24, 2020 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

International oil was trading marginally higher this Thursday morning and early afternoon trade in Asia supported by a draw in U.S. crude oil supplies boosted fuel demand hopes and hopes of a possible Brexit deal.

Oil also took support after the U.S Dollar extended losses from Wednesday.

However, on the supply side of the picture, U.S. energy firms this week added oil and natural gas rigs for a fifth week in a row and capped upside. The oil and gas rig count, an early indicator of future output, rose 2 to 348 in the week to Dec. 23, energy services firm Baker Hughes Co said.

Technically, WTI Crude Oil has bounced back from near 21-Daily Moving Average at $46.40 levels and started to trade above $48.00 levels which could push prices up to $48.45-$49.88 levels. Support is at $47.50-46.60 levels.

Domestic oil prices are trading marginally lower this Thursday morning and early afternoon trade.

Technically, MCX Crude Oil January took a support near 21-DMA which is placed at 3420 levels where it bounced back above 3550 levels forming a long Bullish Candlestick with good volume activity indicating a bullish momentum to continue upto to 3610-3690 level. Support is at 3520-3460 levels.

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Source : Equity Bulls

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