Crude Oil - Dec 4, 2020 - Commodity Snippet - Reliance Securities

International oil prices ended with modest gains on Thursday on renewed hopes for a U.S. stimulus deal and after major oil producers agreed to increase output by a modest 500,000 barrels per day (bpd) from January.

OPEC's move will cut production by 7.2 million bpd, or 7% of global demand from January, compared with current cuts of 7.7 million bpd. Markets were expecting a 2 million cut from January 2021.

OPEC+ will now meet once a month to review conditions and monthly increases will not be greater than 500,000 barrels per day (bpd).

Domestic crude ended higher on Thursday, tracking firm overseas prices.

International and Domestic Outlook

International oil prices have started firm this Friday morning in Asian trade as producers agree on supply compromise.

Technically, WTI Crude Oil has given a breakout above $46.00 levels where positive momentum could take prices above $46.60-$47.70 levels. Support is at $45.20-$44.15 levels.

Domestic crude could start higher this Friday morning, tracking international prices.

Technically, MCX Crude December has confirmed Bullish Reversal after formation of Bullish Engulfing Candlestick. Above 3350 will continue its upside momentum upto 3399-3460 levels. Support is at 3340-3270 levels.

Source : Equity Bulls

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