Diesel, Petrol Price: Crude prices on rise; BONANZA for oil traders, expert says
Petrol, Diesel Price - After being severely hit during the lockdown because of the Coronavirus pandemic, the crude oil prices are now seeing significant recovery and the trend looks positive in the near to medium term, Anuj Gupta, Senior Technical Analyst at Angel Broking and Commodity and Forex market expert said
Petrol, Diesel Price – After being severely hit during the lockdown because of the Coronavirus pandemic, the crude oil prices are now seeing significant recovery and the trend looks positive in the near to medium term, Anuj Gupta, Senior Technical Analyst at Angel Broking and Commodity and Forex market expert said.
But the rising prices mean different things for different people. While the increase will hit the pockets of the common man as petrol and diesel prices will further increase, there will be a Bonanza for the traders who trade in oil futures.
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The Senior technical analyst said that the Brent Crude and WTI Crude prices are likely to hit levels around USD 65 and USD 60. This is the target over the next 15 days, he added.
MCX February Oil Futures
At 2:50 pm, the MCX February Oil Futures were trading at Rs 4086 BBL, gaining almost 0.4 per cent on Thursday from the previous close. He recommended a Buy on oil futures at Rs 4040. He puts the stop loss at Rs 3950 and target price at Rs 4160.
Oil prices extended gains on Thursday after the OPEC+ alliance of major producers stuck to a reduced output policy, and as crude stockpiles in the United States fell to their lowest levels since March last year, Reuters reported.
"Crude prices have been rising higher now that OPEC+ has convinced the energy market that they are determined in accelerating market re-balancing without delay," this report said quoting Edward Moya, senior market analyst at OANDA.
The Organization of the Petroleum Exporting Countries (OPEC) and allies, known as OPEC+, extended its current oil output policy at a meeting on Wednesday, a sign that producers are happy that their deep supply cuts are draining inventories despite an uncertain outlook for a recovery in demand as the coronavirus pandemic lingers, it further said.
A document seen by Reuters on Tuesday showed OPEC expects the output cuts will keep the market in deficit throughout 2021, even though the group cut its demand forecast.
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