15 February 2016


Outlook: Crude oil prices last week was trading on a weaker note tracking negative cues for both the benchmarks. Last day of the week showed magnified gains as the rumors for OPEC cooperation with regards to production cut came in light by the UAE minister. Before this, a couple of times crude oil went up showing some massive intraday gains as the rumor for production cut was focused. The Venezuelan minister expects a technical meet between major oil players before their scheduled June meet, so that prices could be stabilized. Until and unless some exact steps are not disclosed by the giants, crude won’t sustain at its massive gains. Prices today are moving down, probably due to some technical corrections after humongous gains. The US market will remain close today on account of President’s Day and thus limited trading range may be witnessed. Today, China returned back from its week long holiday and jolted the market by its January month Y/Y and M/M imports data. The former one crude imports i.e Y/y in Jan went down by 4.60%, whereas M/m basis went down by 19.60%. Last week, Baker Hughes showed 8th continuous week downfall in active crude oil rigs in the United States region and anticipations are being made for further downfall in crude prices, which could be much less their sustainability cost. A range bound trend in crude prices is expected during the day.

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