Crude Oil - Dec 4, 2020 - Angel Broking

Mr. Anuj Gupta - DVP - Commodities and Currencies Research, Angel Broking Ltd

Yesterday, WTI Crude prices increased by 1.02 percent and MCX crude increased by 0.77 percent as US crude oil inventories continue to dwindle. US crude oil inventories came in at -0.7 M for the week against market expectations of -1.7 M and previous reading of -0.8 M.

OPEC and non-OPEC allies resumed talks to iron out oil production policy for next year, seeking to build consensus over how to tackle weak demand amid a new wave of coronavirus cases. OPEC has curbed nearly 8 million barrels per day (bpd) of supply to the global market as the coronavirus continues to cut demand for fuel.

The group had been widely expected to roll over those production cuts of 7.7 million bpd into Jan-Mar 2021 amid a resurgent COVID-19 pandemic. Saudi Arabia was the main advocate of such a move. Major economies like U.S. and Europe facing a tough time containing the covid19 pandemic which extended the chances of fresh lockdown denting the demand prospects for Crude.

As for today traders can go for BUY in Crude Oil at Rs 3330 levels with the stop loss of Rs 3270 levels for the target of 3450 levels. WTI Crude Oil May test $48 per barrel levels and Brent Crude Oil may test $52 per barrel very soon.

Source : Equity Bulls

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