Views of Mr. Prathamesh Mallya (Chief Analyst - Non-Agri Commodities & Currencies, Angel Broking):
"Oil prices which have been trading in a narrow range of $3 for most of 2017 has finally been taken off as prices declined heavily in the past two trading days of the last fortnight. The supply side dynamics in oil markets have ensured that bears have taken the prices down to the 3 month lows. High oil inventories in the US at around 528 million barrels, increasing rig counts in the US, and stronger dollar index are push factors for oil prices correction in recent times.
Speculative positioning of fund managers also indicates liquidation which is a sign of further bearishness in the oil counter. We expect this fall to continue further towards $46 mark (CMP$49.56/bbl) in the coming trading sessions. In the Indian markets (CMP: Rs.3310/bbl), a fall of Rs.150-200 will be expected as the price can move down lower towards Rs.3100/bbl mark."