Geo-political risks lift oil prices: Angel Broking

Monthly Report on Crude by Mr. Prathamesh Mallya (Chief Analyst - Non-Agri Commodities & Currencies, Angel Broking):

"Increasing US production growth, OPEC compliance on output cuts, high oil inventories in the US, uncertainty with regards to policies of the new US government, lower growth rate in China were factors responsible for lower oil prices in the past month.

Oil markets are sitting on high oil inventories as refinery maintenance activity in the US led lot of stocks to pile up while on the other hand, the compliance by OPEC nations to cut the oil output is benefiting the shale producers in the US with rise in oil prices above $50.

It remains to be seen whether the oil inventories in the US sways away with increase in refinery activity as the summer driving season gears up in the US in the month ahead."

Source : Equity Bulls

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