Oil Price Outlook: Vaccine hopes fuel crude oil price; expert reveals where Brent, WTI are headed, see MCX trading strategy
Crude Oil Outlook: The hopes of a Coronavirus Vaccine is helping the cause of crude oil with the price rising for fourth straight session. The rally is despite the stock-piling of the commodity because of fresh eruption in the coronavirus cases across the globe
Crude Oil Outlook: The hopes of a Coronavirus Vaccine is helping the cause of crude oil with the price rising for fourth straight session. The rally is despite the stock-piling of the commodity because of fresh eruption in the coronavirus cases across the globe.
The Covid-19 vaccine has been able to inject a lot of fresh impetus to the otherwise sombre mood around the crude oil, Anuj Gupta, Deputy Vice President, Commodity and Currency Research at Angel Broking said.
The news around vaccine is encouraging as multiple companies have announced results of their test samples, he said. The market is expecting the commercial launches of the vaccines in the near term, Gupta added.
On the issue of stockpiles, Gupta said that the stocks have piled up as the fresh wave of infections is being seen globally. Consumption situation would improve going forward, he said.
He however, cautioned that the logistics and last mile delivery could be a challenge.
The Senior Technical Analyst said that he expected the Bent Crude to achieve the target price of USD 53 over a fortnight period, while pegging the US WTI crude price at USD 50. WTI is West Texas Intermediate crude oil.
Brent crude was up 38 cents, or 0.8 per cent, at USD 48.24 a barrel by 0616 GMT (11:46 am), having risen almost 4 per cent in the previous session. Meanwhile, the WTI crude gained 27 cents, or 0.6 per cent, to USD 45.18, after rising more than 4 per cent on Tuesday.
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MCX Oil Future Trading tip for today:
At 3:20 pm, the December Oil Futures were trading at Rs 3,355, up by 0.6 per cent from the previous close on Tuesday. Gupta advised buying in oil futures around Rs 3300. He puts the target price at Rs 3400 while the stop loss at Rs 3240.
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