Oil Price Outlook Today: Crude oil headed for further weakness; this expert reveals trading strategy

Crude Oil Outlook:  Amid looming danger of fresh lockdowns on the back of rising Covid-19 cases in Europe and the US, crude oil prices are likely to take a further hit, Anuj Gupta, Deputy Vice President, Commodity and Currency Research at Angel Broking said. 

The further softening in price will be due to the demand-supply gap with the latter present in abundance. Gupta said that he expected the US West Texas Intermediate (WTI) Crude to fall to USD 32 per barrel by November end while the Brent to hit levels around USD 36. 

There is enough inventory in the US and the high production in Libya is only weakening its cause, the Senior Technical Analyst said.  

MCX Oil Future Trading tip for today:  

At 4 pm, the November Oil Futures were trading at Rs 2702, up by 0.15 per cent from the previous close on Thursday. Gupta advised selling around Rs 2740. He puts the target price at Rs 2650 while the stop loss at Rs 2810.  

The December WTI Crude Futures were trading at USD 36.11, down by 6 cents (05:26:48 CT). 

Global oil prices fell more than 1 per cent on Friday, extending losses and on track for a second monthly fall, on growing concerns that the rise in COVID-19 cases in Europe and the United States could hurt fuel consumption, Reuters reported. 

Brent crude slipped for a third day and was down 51 cents, 1.4 per cent, at USD 37.14 a barrel by 0628 GMT after touching a five-month low in the previous session, the report said. December Brent contract expires on Friday. 

Meanwhile, WTI crude declined 48 cents, or 1.3 per cent, to USD 35.69 a barrel after dipping to its lowest since June on Thursday. 

See Zee Business Live TV Streaming Below:

"With a European slowdown jeopardising global consumption and the return of Libyan production, the onus must now fall on OPEC+ to reconsider their 2 million barrel per day production increases in January," the report said quoting Jeffrey Halley, senior market analyst, Asia Pacific, OANDA in Singapore.