Crude Oil - Feb 3, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

International oil extended gains this Wednesday morning and early afternoon in Asia supported by declines in U.S. crude stockpiles.

OPEC+ said it expects that it will drain an oil surplus by the middle of the year. Oil inventories in developed nations will subside back below their five-year average in June, according to a report compiled by OPEC+.

The Joint Ministerial Monitoring Committee, which oversees the alliance's strategy, will convene online today to assess the outlook. The JMMC is unlikely to recommend new policies in this meeting.

Technically, WTI Crude Oil has crossed above $55.00 levels indicating strong uptrend in the counter. There could be volatility in the coming session where resistance is at $55.40-$55.20 levels. Support is at $54.40-$53.60 levels.

Domestic oil prices are trading flat to marginally higher this Wednesday morning and early afternoon in Asia, tracking overseas prices.

Technically, MCX Crude Oil February is sustaining above 4000 levels indicating a bullish momentum up to 4060-4085 levels. Support is at 4010-3970 levels.

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Source : Equity Bulls

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