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.
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