Expect crude oil to trade sideways: Sushil Finance

Sushil Finance’s commodity report on crude oil

Oil prices ended nearly 1 percent higher on Friday, close to their highest levels in months, as major producers meeting in Vienna said they may wait until January before deciding whether to extend output curbs beyond the first quarter. Other ministers said a decision on extending cuts could be taken in November when OPEC holds its next formal meeting. Oil prices have gained more than 15 percent in three months, suggesting OPEC – led output cuts of 1.8 million barrels per day have reduced the global crude glut. Rising demand has also helped balance the market. The U.S. government reported that crude production rose to 9.51 million bpd last week, resuming output close to levels before Hurricane Harvey hit the Gulf Coast in late August. However, the number of U.S. oil rigs operating, an indicator of future  production, fell for the third straight week as a 14 – month drilling  recover y stalled as companies pared back on spending plans when crude  prices were softer.

We expect crude oil prices to trade sideways on the back of profit booking after sharp up – move.

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