Crude Oil Tips Expert : MCX Crude price yesterday settled down by 1.87% at 4680 as easing concern of a supply disruption in Saudi Arabia countered the prospects for tighter supply due to OPEC+ output curbs.
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However downside seen limited on expectations of a recovery in the global economy after the U.S. Senate approved a $1.9 trillion stimulus bill and on a likely drawdown in crude oil inventories in the United States, the world’s biggest fuel consumer.
Organization of the Petroleum Exporting Countries (OPEC), Russia and their oil producing allies, known as OPEC+, agreed last week agree on broadly sticking with output cuts despite rising crude prices.
Crude Investor focus, meanwhile, remains on the prospects for a global economic recovery. Oil-rich Gulf Cooperation Council (GCC) countries, whose state coffers have been battered by the coronavirus crisis, are set to get some fiscal respite after OPEC and its allies last week agreed to extend most oil output cuts into April.
BUY Crude MCX Oil Between – 4720 – 4700 Stop Loss (CBSL) – 4580, Target – 4620 — 4824 (Crude Oil POSITIONAL CALL)
While lower output could weigh on the region’s overall growth this year, higher oil prices are set to curb deficits, providing some headroom for a potential boost to GCC economies recovering from the COVID-19 pandemic.
OPEC’s leader Saudi Arabia said it would extend its voluntary oil output cut of 1 million barrels per day for a third consecutive month, and that it would decide in coming months to gradually phase it out.