- Crude Oil gained after major producers showed they were cutting crude output in line withtheir commitments on restraint.
- Russia’s January oil output up 120,000 bpd to 10.16 mln bpd.
- Tight oil-market in firsthalf could push crude to $65, says Goldman.
MCX crude oil tips for today : yesterday settled up by 2.56% at 4005 after major producers showed they were cutting crude-output in line with their commitments on restraint, supporting a market thrown out of kilter by weak demand during the coronavirus pandemic.
Russian crude oil and gas condensate output has increased by 120,000 barrels per day (bpd) to 10.16 million bpd in January from 10.04 million bpd in December following a global deal on output.
Russia had said it would raise its production by 125,000 bpd in January so the increase is broadly in line with expectations and below the scale of the ramp-up in the first half of the month.
MCX Crude oil prices could rise to $65 a barrel by July amid a tight oil market and slow rebound in demand, Goldman Sachs said.The bank said in a note on Sunday data indicated a deficit of 2.3 million barrels per day (bpd) in the fourth quarter of 2020 driven by higher demand and lower supplies from producers outside the OPEC+ group.
- Global oil demand fell to 92.2 mb/d in 2020, a 9% decline from the year before, according to a new EIA estimate.
- Demand rebounded rapidly after hitting a low point in April 2020, but demand was stagnant and even contracted slightly in late 2020.
- The EIA expects a sharp rebound in demand this year, although two massive unknowns – the pace of vaccinations and the pace of infections from new covid variants – throw most forecasts into a deep state of uncertainty.
- What is the best time to trade crude oil?
- Buy Between 3950—3900 is the best time to trade crude oil mcx.
MCX Money managers cut their net long U.S. crude futures and options positions in the week to January 26, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday. The speculator group cut its combined futures and options position in New York and London by 9,821 contracts to 347,492 during the period.
Crude Oil shot up to a one-year high on Tuesday, with WTI topping $55 per barrel. The oil market is “supported by the combination of tightening fundamentals, as seen through the rising backwardation and the renewed risk appetite in the U.S. stock market,” said Ole Hansen, head of commodities research at Saxo Bank A/S.
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