Crude Oil - July 19, 2021 - Mr. Tapan Patel - Senior Analyst (Commodities), HDFC Securities

Crude oil prices traded lower with benchmark NYMEX WTI crude oil prices fell by 2% to $70.08 per barrel for the day. MCX Crude oil August futures were down by more than 2% to Rs. 5261 by noon session.

Crude oil extended decline on OPEC agreement on output hike and lower demand concerns from rising virus cases. OPEC+ ministers agreed on Sunday to increase oil supply from August to cool prices after rallying to the highest since 2018. OPEC plus nations also agreed new production quotas for several members from May 2022 to overcome internal divisions including the UAE, Saudi Arabia, Russia, Kuwait and Iraq.

Crude oil prices are expected to trade sideways to down for the day with resistance at $72 and support at $68 per barrel. MCX Crude oil August has support at Rs. 5180, resistance at Rs.5320.

Source : Equity Bulls

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