Crude Oil - Commodity Snippet - Dec 15, 2020 - Reliance Securities

International oil prices flat on Monday in a choppy trading session as oversupply concerns offset optimism that a roll-out of the covid vaccine could lift global fuel demand.

Prices slid more than 1% earlier in the session after OPEC said global oil demand would rebound more slowly in 2021 than previously thought because of the lingering impact of the coronavirus pandemic, hampering efforts by the group and its allies to support the market.

Demand will rise by 5.90 million barrels per day (bpd) next year to 95.89 million bpd. The growth forecast is 350,000 bpd less than expected a month ago.

OPEC said its output rose by 710,000 bpd to 25.11 million bpd in November, driven by a rebound in Libya.

This was reflected from the data published by the country. Libyan oil production stood at 1.28 million barrels per day, data showed, up from 1.25 million bpd in late November.

Domestic crude ended flat on Monday tracking flat international prices.

International and Domestic Outlook

International oil prices have started marginally weaker this Tuesday morning in Asian trade as restrictions in many places in the U.S. & Europe and oversupply concerns weighed on markets.

Technically, WTI Crude Oil is trading on a negative note near $47.00 levels and above $46.30 will continue its upside momentum up to $47.60-$48.00 levels. Support is at $46.50-$44.90 levels.

Domestic crude could start marginally in the red this Tuesday morning, tracking international prices.

Technically, MCX Crude December has bounced back from 3370 levels. However below 3420 could see some correction up to 3390-3350 levels. Resistance is at 3475-3515 levels.

Source : Equity Bulls

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