(Time Zone: Arizona, USA)
Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities
International oil prices are trading with gains this Wednesday morning and early afternoon trade in Asia.
Brent prices moved to their highest since February 2020 after Saudi Arabia agreed to make additional, voluntary oil output cuts of 1 million barrels per day (bpd) in February and March.
Prices also took support after an industry figure showed U.S. crude stockpiles were down last week by 1.7 million barrels in the week to Jan. 1 to 491.3 million barrels.
However, the Saudi Arabia decision reflects that demand for the fuel will be weak as new lockdowns are put in place to curb the spread of new coronavirus variant infections.
Technically, WTI Crude Oil has crossed above $50.00 levels where it has given a breakout with good volume activities indicating a bullish momentum up to $51.05-$52.09 levels. Support is at $49.75-$49.00 levels.
Domestic oil prices were trading marginally higher on Wednesday morning and early afternoon trade, tracking overseas prices.
Technically, MCX Crude Oil January has given a sharp rise forming a Long Bullish Candlestick where its trading above 3650 levels further could see 3680-3730 levels. Support is at 3610-3530 levels.
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