Crude Oil - Outlook - April 1, 2021 - Reliance Securities
(Time Zone: Arizona, USA)
Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities
International oil prices ended lower on Wednesday as fresh lockdowns in Europe stoked fuel consumption fears and a pessimistic demand outlook from OPEC and its allies ahead of their meeting to decide on production curbs.
Domestic crude prices fell on Wednesday, tracking weak overseas prices.
President Emmanuel Macron ordered France into its third national lockdown and said schools would close for three weeks as he sought to push back a third wave of COVID-19 infections.
OPEC+ has raised concerns that uncertainties may impact the recovery in oil demand due to rising numbers of virus infections globally and lockdown measures.
A downward revision of OPEC+ oil demand growth forecast for this year by 300,000 barrels per day (bpd) also weighed on prices.
Meanwhile, the Joint Technical Committee, which advises the group of oil-producing nations that includes Saudi Arabia and Russia made no formal recommendation yesterday ahead of the ministerial meeting on Thursday.
International oil prices have started higher this Thursday morning in Asian trade as investors await the conclusion of OPEC meeting.
Technically, WTI Crude Oil could trade within the range of $58.80-$61.00 levels.
Domestic crude could start higher this Thursday morning, tracking international prices.
Technically, MCX Crude Oil April resistances are at 4450 and 4475, and supports are at 4310 and 4240.
Natural gas prices moved lower on Wednesday ahead of inventory report from the Department of Energy.
Domestic natural gas ended lower on Wednesday, tracking overseas prices.
Expectations are for stockpiles to climb by 4 Bcf, according to survey provider Estimize.
The weather is expected to be warmer than normal over the next two weeks, which is likely to reduce heating demand.
International natural gas futures have started weaker this Thursday morning in Asian trade as traders await inventory data.
Technically, NYMEX Natural Gas could trade in a range of $2.550-$2.750 levels.
Domestic natural gas could start weaker this Thursday morning, tracking overseas prices.
Technically, MCX Natural Gas April holds resistance near 197-200 levels where it holds a support near 193-191 levels.
Disclaimer: The recommendations, if any, made herein are expression of views and/or opinions and should not be deemed or construed to be neither advice for the purpose of purchase or sale of any security, derivatives or any other security through RSL nor any solicitation or offering of any investment /trading opportunity on behalf of the issuer(s) of the respective security(ies) referred to herein. These information / opinions / views are not meant to serve as a professional investment guide for the readers. No action is solicited based upon the information provided herein. Recipients should rely on information/data arising out of their own investigations. Readers are advised to seek independent professional advice and arrive at an informed trading/investment decision before executing any trades or making any investments. While due care has been taken to ensure that the disclosures and opinions given are fair and reasonable, none of the directors, employees, affiliates or representatives of RSL shall be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including lost profits arising in any way whatsoever from the information / opinions / views contained herein.