Prices of oil have shown steep recovery from $50.5, its 2-month low, to $55 after Saudi Arabia showed its intention to defend the oil prices and ready to further cut in oil production.
But gains are likely to be capped amid demand concern led by the US-SINO Trade war and higher US Oil production, which is likely to go up further in recent weeks.
China's central bank lowered its official yuan midpoint for the ninth straight day to a fresh 11-year low on Tuesday to reflect broad weakness in the local unit, will hit the sentiment of the riskier asset classes. A lower yuan raises the cost of dollar-denominated oil imports in China, the world's biggest crude oil importer.
On the other side, Saudi Arabia, the de-facto leader of the Organization of the Petroleum Exporting Countries (OPEC), said late last week it plans to keep its crude oil exports below 7 million barrels per day in August and September to help drain global oil inventories.
Crude oil prices at MCX are likely to remain between Rs3600 - Rs4170.
NYMEX prices would likely to remain in the range of $50 - $60.