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

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

"From $62/bbl on 9th April 2018 to $67.45 on 11th April 2018, WTI oil prices have risen by around 8.5 percent in just 3 trading session.

This significant positive momentum in the oil prices is a result of geo-political tensions between two nations i.e US and Syria, wherein US has threatened to attack Syria with missiles for its use of chemical weapons used to kill civilians.

A single tweet from the US president to threaten Syria rattles global markets and commodities were no different from this mayhem. Possibility of oil shortage as Syria is one of the oil producing nations and weakening dollar index added further volatility in oil prices.

All the uncertainty is factored in oil prices now, correction is due in oil prices as rising oil supplies from US will keep a check on the fast pace rising oil prices.

We expect oil prices to correct towards $62 (CMP- $66.5/bbl) in the near term, while MCX oil prices will move lower towards Rs.4150 per barrel."

Source : Equity Bulls

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