Crude Oil Outlook - March 22, 2022 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

International oil prices rose more than 7% on Monday as European Union (EU) nations disagreed on whether to join the United States in a Russian oil embargo after an attack on Saudi oil facilities.

Domestic crude oil and Energy Index futures ended with gains, tracking firm overseas prices.

Given the uncertainty about the EU's potential ban of Russian petroleum imports, U.S. gasoline futures jumped 5%.

According to Reuters, EU governments will consider whether to impose an oil embargo on Russia over its invasion of Ukraine.

Meanwhile, concerns over supply worsened over the weekend after attacks by Yemen's Iran-aligned Houthi group caused a temporary drop in output at a Saudi Aramco refinery.

International oil prices rose this early Tuesday morning in Asian trade on news that some EU members are considering imposing sanctions on Russian oil and as attacks on Saudi oil facilities also lifted prices.

Technically, if WTI Crude Oil continues above $110.00 level it could continue its Bullish momentum up to $114.30-$115.60 levels. Support is at $109.66-$108.00 levels.

Technically, Brent Oil Futures could continue its upside momentum up to $119.30-$121.50 levels. Support is at $118.40-$117.50 levels.

Domestic crude oil prices could start with gains this early Tuesday morning, tracking a positive start in the overseas prices.

Technically, MCX Crude Oil April holds resistance at 8398-8455 levels. Support is at 8310-8260 levels.

U.S. Natural gas (NG) prices remained range bound and ended flat on Monday amid lack of fresh triggers.

Indian NG prices also ended flat on Monday and remained range bound, tracking overseas prices.

Weather is cooler than normal in the East coast, while warmer than normal in the West coast.

U.S. LNG exports declined week over week but should continue to rise due to high demand in Europe.

U.S. NG prices have started marginally higher this early Tuesday morning in Asian trade.

Technically, NYMEX Natural Gas could trade in a range of $4.80-$5.10 levels in coming session.

Domestic NG prices could start stronger this early Tuesday morning tracking a positive start in the overseas prices.

Technically, MCX Natural Gas March holds a strong resistance at 376-382 levels. Support is at 367-361 levels.

Source : Equity Bulls

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