Below is the Quote on Crude Oil By Mr. Anuj Gupta , DVP- Commodities and Currencies Research, Angel Broking Ltd
“Last week, WTI Crude plunged over 6 percent as pandemic triggered demand concerns, sudden surge in U.S. oil inventories and appreciating U.S. Dollar continued to undermine Oil prices. On MCX Crude oil plunged by 5.51% to 2,743 levels. Currently WTI crude oil is trading at $ 37.57 per barrel. As per reports from the U.S. Energy Information Administration (EIA), Crude inventory levels increased by 2.0 million barrels in the week ending on 4th September’20. Oil prices extended the losses after top Crude exporter, Saudi Arabia, trimmed the Official Selling Price (OSP) to Asia for the month of October’20 considering the falling demand. OPEC & its allies are scheduled to meet on 17th September to review the current Oil market scenario.
OPEC+ trimmed the production cuts down to 7.7 barrels per day since August considering the growing demand. However, surge in covid19 cases around the globe clouded the outlook for Crude.
Concerns over bleak global demand and a slower than expected economic recovery might push Crude prices lower. However, storm hitting U.S. gulf production is expected to limit the loss for Crude. Geopolitical tension between the middle east countries may support the crude oil prices and short covering also may be seen in crude oil prices from the lower levels. So as of today we are recommending to buy in crude oil on a dip. Traders can go for buy in mcx crude oil at 2720 levels, with the stop loss of 2660, for the target of 2830 levels.”
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