26 February 2016

CRUDEOIL ANALYSIS FOR TODAY 26 FEB 2016

Crude Oil: The above is hourly chart of Crude Oil. It suggests that prices are trading in sideways zone. It is expected to move further upside till 2300-2360 levels. On the downside, immediate support is located at 2170 and 2115 levels. Crude oil futures jumped 3 percent on Thursday, reversing earlier loses after confirmation of a meeting of major producers and news of project delays and job cuts in the industry. Venezuela reaffirmed a mid-March meeting of oil producers that would include Saudi Arabia, Russia and Qatar, to stabilize prices that have slumped 70 percent in a 20-month rout. The four countries are involved in an effort to get oil producers in the Organization of the Petroleum Exporting Countries and elsewhere to freeze production at January's highs. Many traders believe an output cut and not freeze is what the market needs to clear the global crude glut. Aside from the March meeting, traders said sentiment in oil was helped by project deferments in the U.S. shale industry and job cuts that will slow production. Oil services provider Halliburton said it will start a new round of global layoffs that will cut 5,000 jobs. Oil prices had fallen as much 3 percent earlier on Thursday after data indicating new record highs in U.S. crude inventories.
Outlook : We expect crude oil prices to trade positive on the back of news of stalled loadings for the United Kingdom's North Sea oil. Buy around 2220 levels with a stop loss placed below 2170 levels for targets of 2300 levels.