Views by Mr. Prathamesh Mallya (Chief Analyst - Non-Agri Commodities & Currencies, Angel Commodities Broking):
"OPEC Compliance on production at more than 100 percent for fifth consecutive month in a row, withdrawal of oil inventories in the US, possibility of sanctions on Iran, and consecutive net longs by hedge funds and money managers drove oil prices higher by around 4 percent in April for WTI as well as Brent Crude.
On the MCX, prices have rallied from 4200/bbl to Rs.4450 per barrel rising by around 4.5 percent in the same time frame.
However, note of caution for traders and investors, rising production from the US, Russia will cap any rally in oil prices. WTI can move higher towards $70 in the near term, while MCX oil prices can move higher towards Rs.4600 in the near term."