Crude Oil - Commodity Snippet - Dec 11, 2020 - Reliance Securities

International oil prices rose on Thursday, with Brent ending above $50 a barrel for the first time since early March, fuelled by hopes of a faster demand recovery as countries start to roll out COVID-19 vaccines.

Britain began vaccinations this week and the United States could start inoculations as soon as this weekend after U.S. FDA approved the emergency use of the Pfizer vaccine.

Canada on Wednesday approved its first vaccine and said initial shots would be delivered starting next week.

The bullish sentiment offset a large increase in U.S. crude inventories that showed there was still ample supply available.

Concern over an attack on an Iraqi oilfield also lent support. Two wells at a small field were set ablaze by explosives this week, but overall production from the field was not affected.

OPEC+ will further ease its supply restrictions in January by adding an extra 500,000 barrels per day although the easing is more gradual than previously agreed, to provide additional support to the market.

Domestic crude surged higher on Thursday and ended up by almost 3%, tracking firm international prices.

International and Domestic Outlook

International oil prices have started higher this Friday morning in Asian trade supported by optimism surrounding the vaccine.

Technically, WTI Crude Oil has given a breakout of Pennant formation where its trading above $47.00 levels with increase in volume activity indicating for further upside movement upto $47.70-$49.00 levels. Support is at $46.80-$46.00 levels.

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

Technically, MCX Crude December has given a breakout above a resistance zone of 3415-3445 levels where prices are expected to continue its bullish momentum up to 3495-3560 levels. Support is at 3445-3410 levels.

Source : Equity Bulls

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