Crude Oil prices to trade sideways: Angel Commodities
Angel Commodities’ report on crude oil
WTI and MCX oil prices traded higher by 2.7 and 4.4 percent last week on account of commitment by the OPEC nations to cut oil output. Brent crude hit $64.65, its highest since mid – 2015, as political tensions in the Middle East escalated after a sweeping anti – corruption purge in top crude exporter Saudi Arabia, which in turn has confronted Iran over the conflict in Yemen. The Organization of the Petroleum Exporting Countries’ 2017 World Oil Outlook showed the group predicts demand for its crude will rise more slowly than previously expected in the next two y ears, as higher prices from its supply policy stimulate output growth from rival producers. The U.S. Energy Information Administration (EIA) said that U.S. crude production rose to 9.620 million barrels per day during the week of Nov. 3, the highest weekly output on record according to federal energy data going back to 1983.
We expect oil prices to trade sideways today as anti – corruption drive in Saudi continue to support prices although a surprise build in the US inventory and reports of decline in imports by China will limit upside. On the MCX, oil prices are expected to trade lower today, international markets are trading flat at $5 6.78 per barrel.
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