Crude Oil - May 12, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

International oil prices recovered from session lows on Wednesday early afternoon trade in Asia supported by a drop in U.S. crude inventories and OPEC's robust demand outlook.

Meanwhile, investors will keep a close eye on the colonial pipeline cyber-attack saga which seems to be dragging on and is causing shortages in the Eastern United States.

Gasoline stations from Florida to Virginia began running out of fuel as drivers rushed to top up their tanks and pump prices rocketed. U.S. unleaded gasoline prices hit an average $2.99 a gallon, the highest since November 2014, the American Automobile Association said.

Markets now await the official inventory data from EIA tonight.

Technically, WTI Crude Oil has bounced back from its multiple support zones near $63.70-$63.95 levels and now will continue its bullish momentum up to $65.85-$66.33 levels.

Domestic oil prices are trading in the green on Wednesday early afternoon trade, tracking overseas prices.

Technically, MCX Crude Oil May has bounced back from 4688 level and continued trade above the level will push prices further up to 4843-4885. Support is at 4805-4780.

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Source : Equity Bulls

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