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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