Oil futures prices traded above last two and half year’s high in the last month, fueled by ongoing supply concern from Libya. Riots driven by increasing inflation in Tunisia has spread over other countries like Egypt, Bahrain, Libya, Iran etc. Thus, supply disruption in major oil producing countries boosted oil prices to trade on higher side.
In short term, we may expect crude oil futures prices to continue the positive trend, on the back of unresolved protest. Other factors like prevailing winter weather condition which may lead for further inventory drawdown and expected better US economy may support oil prices. However, any changes in peace plan or further spread over of protest in other countries of Middle East in near future may change the direction of crude oil prices. However, in KCTL we may expect oil prices to continue the bullish trend in near term.
CRUDE OIL
Crude oil futures prices have climbed above 15% from last year’s closing and touched Rs.4707/bbl in the MCX platform in last month. Oil prices took cues from ongoing Middle East concern, basically in Egypt, Libya and Bahrain. Increasing supply concern supported oil futures to trade above last two year’s high. Similarly, NYMEX traded oil futures climbed above $103 and closed with a gain of more than 5 percent in the last month .Brent crude oil futures traded above $113 and closed at $111.80/bbl.
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