Crude Oil - Jan 4, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

International oil prices are trading with solid gains on Monday morning and early afternoon in Asia supported by expectations that OPEC and allied producers may cap output at current levels in February at a meeting later in the day.

Investors believe that the cartel could hold the output cuts as the group may be worried that the recent surge in covid-19 infections could see reimposition of travel restrictions in many countries, in turn denting demand for the fuel.

Prices also found support after the dollar was down on Monday morning and early afternoon in Asia.

Technically, WTI Crude Oil has given a breakout after a consolidation momentum since many days. It is trading above $49.00 levels indicating a bullish momentum up to $49.90-$51.20 levels. Support is at $48.40-$47.70 levels.

Domestic oil prices are trading with gains on Monday morning and early afternoon tracking overseas prices.

Technically, MCX Crude Oil January has given a breakout above 3600 levels where further could see 3655-3705 levels. Support is at 3560-3520 levels.

Disclaimer: The recommendations, if any, made herein are expression of views and/or opinions and should not be deemed or construed to be neither advice for the purpose of purchase or sale of any security, derivatives or any other security through RSL nor any solicitation or offering of any investment /trading opportunity on behalf of the issuer(s) of the respective security(ies) referred to herein. These information / opinions / views are not meant to serve as a professional investment guide for the readers. No action is solicited based upon the information provided herein. Recipients should rely on information/data arising out of their own investigations. Readers are advised to seek independent professional advice and arrive at an informed trading/investment decision before executing any trades or making any investments. While due care has been taken to ensure that the disclosures and opinions given are fair and reasonable, none of the directors, employees, affiliates or representatives of RSL shall be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including lost profits arising in any way whatsoever from the information / opinions / views contained herein.

Source : Equity Bulls

Keywords