Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Google
Web www.equitybulls.com
Commodities

| More

OPEC and its output cap, the never ending story: Angel Commodities Broking

Posted On: 2017-12-03 10:39:16

Views by Mr. Prathamesh Mallya (Chief Analyst- Non-Agri Commodities & Currencies, Angel Commodities Broking):

"Commodities had a roller coaster ride last month with most of the metals like Nickel, Aluminium, Zinc and Silver falling by around 10%, 5.5%, 3.3% and 2% respectively, while energy pack had a good run-up with gains of around 6 percent in Crude oil and 5 percent in Natural Gas.

The fall in commodities market is purely on account of upbeat sentiments in global equities run-up in November would be a 13th consecutive monthly gain.

In the energy markets, crude and natural gas were the favourite of investors as the uncertainty with regards to the OPEC continuing its cap in oil output cut was the theme for most of the past month. At-last, OPEC and non-OPEC producers led by Russia agreed to extend output cuts until the end of 2018, while also signaling a possible early exit from the deal if the market overheats. The surprising factor is that Nigeria and Libya would be included in the oil output deal and Nigeria will cap its oil output at 1.8 million barrels a day.

However, the efforts of the OPEC nation to stabilize global oil markets and inventories are acting as a boon for US oil producers. They continue to increase the oil production with a record production of 9.68 million barrels per day versus 8.5 mbpd last year, just before the cuts were implemented by the OPEC.

Going forward, if the producers in the US increase their rig count to take the benefit of higher prices, then another collapse in oil prices would be around the corner in the first quarter of 2018 itself.

All said, WTI oil prices will see near term correction towards $56 while the trend remains strong in the counter with the onset of winter in the US, the incremental demand will result in stronger oil prices from a month perspective. MCX oil prices will also witness some correction towards Rs.3650 which can be used as price points to accumulate."


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com





Other Headlines:

Nickel supply woes to ease as Philippine audit clears 23 mines: Angel Commodities Broking

Technical selling activity hits aluminium: Angel Commodities Broking

Chana futures hit fresh low after relaunch last year: Angel Commodities Broking

Phillipines' fresh curbs to buoy Nickel: Angel Commodities Broking

Comfortable supplies in oil markets - will oil prices rally further? Angel Commodities Broking

Nickel rallies to the top: Angel Commodities Broking

Oil prices to correct, WTI headed towards $62: Angel Commodities Broking

Guar to trade higher in coming weeks: Angel Commodities Broking

MCX Aluminium hits record high on supply woes: Angel Commodities Broking

Cotton positive on export demand, reduce acreage: Angel Commodities Broking

Trump's hard line protectionism stance draws ire: Angel Commodities Broking

Robust imports, Steel curb extension boost metals: Angel Commodities Broking

Castor seed prices may correct due to arrival pressure: Angel Commodities Broking

US import curbs cushion Aluminium: Angel Commodities Broking

Jeera down on reports of higher production prospects: Angel Commodities Broking

Cotton may trade lower on anticipation of improved arrivals: Angel Commodities Broking

Correction in the metals pack - An opportunity for longs? - Angel Commodities Broking

Nickel resumes its freefall after a brief rally: Angel Commodities Broking

Jeera hit all time high on export demand, diminishing stocks: Angel Commodities Broking

Edible oil slipping from 10 month high on record imports and higher oil seed production in 2016/17: Angel Commodities Broking

Sluggish Chinese economy hits base metals: Angel Commodities Broking

Will the rally continue for oil prices? Angel Commodities Broking

Battery demand prospects fuel Nickel to two-year high: Angel Commodities Broking

Castor seed heading for first monthly loss in 5 months in October: Angel Commodities Broking

Mustard prices likely to trade higher in coming month on improved demand: Angel Commodities Broking

Aluminium rules the commodity charts: Angel Commodities Broking

Zinc shines bright thanks to supply woes, China's RRR cut: Angel Commodities Broking

Weekly Agri-Commodities Update | Angel Commodities Broking

Double whammy of North Korea, S&P downgrade hits metals: Angel Commodities Broking

Early Chinese output cuts boost metals: Angel Commodities Broking

Weekly Agri-Commodities - Update - Angel Commodities Broking

Profit booking, weak Chinese data bother base metals: Angel Commodities Broking

Safe haven play back in gold: Angel Commodities Broking

Weekly Agri-Commodities Update - Angel Commodities Broking

Steel rally, Chinese demand prospects - win-win for base metals: Angel Commodities Broking

Turmeric surge on diminishing arrivals and improving demand: Angel Commodities Broking

Weekly Agri-Commodities Update - Ritesh Kumar Sahu - Angel Commodities Broking

Bull run in metals far from over: Angel Commodities Broking

Safe haven play back in precious metals, Oil falls on over supplied markets: Angel Commodities Broking

Weekly Agri Commodities Update: Angel Commodities Broking

Castor Prices surge on higher exports, crop damage: Angel Commodities Broking

Steel rally pushes base metals to new highs: Angel Commodities Broking

Oil loses its shine this week, Non farm payrolls the focus tonight: Angel Commodities Broking

Weekly Agri - Commodities Update: Angel Commodities Broking

Guar prices surge on good exports and heavy rains: Angel Commodities Broking

Nickel jumps to highest since April'17: Angel Commodities Broking

Fearing record imports, Pepper hit lower circuit on MCX and NCDEX on debut: Angel Commodities Broking

DX nosedive to 11-month lows; base metals rejoice: Angel Commodities Broking

Weekly Agri-Commodities Update: Angel Commodities Broking

Crude oil outshines the commodities space - gains solid 5 percent this week: Angel Commodities Broking





Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2018