Crude Oil - Jan 21, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

International oil prices were weak this Thursday morning and early afternoon trade in Asia after data showed a surprise build in U.S. crude oil supplies that re-ignited fuel demand worries.

Data industry group the American Petroleum Institute (API) showed that crude inventories rose by 2.6 million barrels in the week to Jan. 15 to about 487.1 million barrels, compared with expectations in a poll for a fall of 1.2 million barrels.

Weekly government data on inventories are being released on Friday.

Prices were also down amid speculation that Joe Biden's administration will enact policies that could tighten crude supply.

Technically, WTI Crude Oil took a resistance near $53.80-$53.95 levels but trading above $53.00 levels indicating a sideways momentum. Support is at $52.75-$52.10 levels. Resistance is at $53.50-$53.90 levels.

Domestic oil prices fell this Thursday morning and early afternoon trade, tracking weakness in the overseas markets.

Technically, MCX Crude Oil February is trading below 3900 levels indicating a sideways to marginal downside momentum up to 3870-3800 levels. Resistance is at 3920-3960 levels.

Disclaimer: The recommendations, if any, made herein are expression of views and/or opinions and should not be deemed or construed to be neither advice for the purpose of purchase or sale of any security, derivatives or any other security through RSL nor any solicitation or offering of any investment /trading opportunity on behalf of the issuer(s) of the respective security(ies) referred to herein. These information / opinions / views are not meant to serve as a professional investment guide for the readers. No action is solicited based upon the information provided herein. Recipients should rely on information/data arising out of their own investigations. Readers are advised to seek independent professional advice and arrive at an informed trading/investment decision before executing any trades or making any investments. While due care has been taken to ensure that the disclosures and opinions given are fair and reasonable, none of the directors, employees, affiliates or representatives of RSL shall be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including lost profits arising in any way whatsoever from the information / opinions / views contained herein.

Source : Equity Bulls

Keywords