Crude Oil - March 25, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

International oil prices are trading weak this Thursday morning and early afternoon trade as fresh corona virus lockdowns revived worries about demand for oil products, even as tugboats struggled to move a stranded container ship blocking crude oil carriers in the Suez Canal.

Reuters reported that efforts are being made to dislodge a 400-metre-long container vessel that has choked traffic along the Suez Canal. Resumption of traffic along the canal will weigh on sentiments.

Meanwhile, a stronger U.S. dollar also kept a lid on prices this Thursday morning and early afternoon trade.

Meanwhile, fresh lockdowns were out in place in Europe in response to rising cases, while India has also seen rising cases in specific states which could prompt general lockdowns and could hamper demand recovery and could weigh on prices.

Technically, WTI Crude Oil has bounced back from $57.26 level and trading above $60.00 levels, which could push prices to $61.11-$61.85 levels.

Domestic crude prices are also trading with small cuts Thursday morning and early afternoon trade, tracking overseas prices.

Technically, MCX Crude Oil April has bounced back from 4213 level indicating for upside momentum up to 4547-4593 levels.

Strategy for Crude Oil April for the rest of the session will be buying near 4400-4380 with a stoploss at 4355 and a target at 4500.

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Source : Equity Bulls

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