Crude Oil - October 20, 2021 Outlook - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

International crude oil prices rebounded on Tuesday.

NYMEX heating oil and gasoline futures also ended with gains on Tuesday.

Domestic crude oil prices ended higher, tracking overseas prices, while energy index ended in the green on Tuesday.

Oil prices continued to find support as an energy supply crunch continued across the globe, while falling temperatures in China revived concerns over whether the world's biggest energy consumer can meet domestic heating needs.

Colder weather already has started to grip China, with close to freezing temperatures forecast for northern areas, according to AccuWeather.com.

After the market hours on Tuesday, API released the inventory data and according to the release Crude stocks rose by 3.3 million barrels for the week ended Oct. 15.

Data also showed gasoline inventories fell by 3.5 million barrels and distillate stocks fell by 3 million barrels.

International oil prices have started weaker this Wednesday morning in Asian trade after data showed a rise in crude inventories.

NYMEX Gasoline and Heating oil futures have also started weaker this Wednesday morning in Asian trade ahead of official inventories data from EIA tonight.

Technically, WTI Crude Oil November above $81.00 level could see upside momentum up to Resistances zones at $82.03-$82.98 levels. Support is at $80.20-$79.50 levels.

Domestic crude oil prices could start weaker this Wednesday morning, tracking a weak start in overseas prices.

On the domestic front, MCX Crude Oil November above 6200 could see a bullish momentum up to 6250-6330 levels. Support is at 6170-6120 levels.

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Source : Equity Bulls

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