Oil price forecast: WTI crude prices to further appreciate on US-Iran tension
WTI Crude oil prices may show $60-61 per barrel levels while MCX Crude oil is poised to show Rs4,220 to Rs 4,230 per barrel, say experts.
The crude oil prices at the WTI is expected to further scale as the US-Iran tension is turning bad to worse. The US President Donald Trump imposing fresh sanctions on Iran and Iran turning down the US proposal for talks has done further damage to the global oil prices. In global commodity markets today, the crude oil prices appreciated by more than $2 dollars in less than three hours of intraday trade. As per the commodity experts, crude oil may show some further rally and may show $60-61 per barrel at WTI within the coming fortnight. In the Indian perspective, the crude oil prices at MCX can show Rs 4,220 per barrel to Rs 4,230 in the same period, say experts.
Commenting on the WTI Crude Oil outlook Sugandha Sachdeva, Vice President at Religare Commodities said, "Crude oil prices have appreciated sharply in the intraday trade and further upside is expected into the WTI Crude in the coming fortnight. The major trigger for the crude oil is the fresh sanctions being imposed by the Donald Trump administration and Iran not ready to talk with the US government to resolve the rising tension between the two nations. At WTI, crude oil has strong support at $50 per barrel while its immediate support is at $53.2 per barrel." She said that in next month oil manufacturing nations OPEC is going to hold talks and hence much will depend on the outcome of OPEC meeting." Asked about the crude oil prices appreciating in the same period in Indian markets Sugandha Sachdeva of Religare Commodities said, "In next fortnight, we can expect MCX gold prices to touch around Rs 4,220 to Rs 4,230 per barrel."
Anuj Gupta, Deputy Vice President — Currency and Commodities at Angel Broking told Zee Business Online, "Apart from the US-Iran tension, lowering crude inventory in the US is also playing a vital role in demand-supply constraint. This demand constraint is expected to continue till August as the majority of the oil manufacturing plants in the US is undergoing maintenance and hence oil manufacturing at those plants have been almost shut down." Commenting upon the oil price outlook at global commodity markets Anuj Gupta said, "Brent Crude oil is trading around $67 per barrel and it may show $70 per barrel levels immediately and once this level is triggered and the oil prices sustain above this levels, we can expect the next target of Brent Crude oil prices of $75 per barrel." In MCX perspective, Anuj Gupta too expected that the crude oil prices will show Rs 4,300 levels by the end of July.