Centrally weakened by oversight, crude moves ahead of US policies
Over the past few weeks, crude oil is trading in the middle of the ups and downs. In the international market, crude is trading in the range of 60 to 64 dollars per barrel. Experts say that despite the constant increase in production in the US, crude prices have not been reduced. The reason for this is that OPEC and its allies continue to cut the crude production in an effort to increase prices. At present, the credit sentiment is weak due to overproduction in the US. Despite this, crude prices are not expected to fall further. Crude moves ahead on US policies.
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US Centric will market
says Kedia Commodity director Ajay Kedia that crude prices will guide the US now. Crude's shoretage took place in the market by pursuing the decision of production cut by OPEC countries. But America increased the production by uprooting this short-stock, thereby stabilizing crude prices. At the same time, the US is not yet ready to reduce crude production at any cost. Data in the US has improved, job growth. Due to this, further demand for crude will be higher there itself. At the same time, America wants to keep its position even better in the export market.
According to the International Energy Agency (IEA) at Production Alltime High in US, global oil supply has increased from 97.9 million barrels per day to 7,00,000 barrels per day last year. Inventory in the US is constantly increasing. In January, crude stock has increased from 2 million barrels to 5 million barrels. At the same time, US produced 10.38 million barrels of crude per day, which is all-time high.
Researchers Said, “Shells have increased in America. In America, the number of oil rigs has increased. Last week, American energy companies opened 4 oil rigs. With this the number of oil rigs increased to 800. Prices increased slightly due to increase in oil rigs.
In the event of Russia's reversal of the
world's oil production countries, the US will move to No. 1 in 2019, excluding Russia. The International Energy Agency said that America's Shell Oil production is growing rapidly, in the global oil market, it will soon reverse Russia. It is believed that by next year America will become number one in crude oil production.
Supported by these facters,
Kedia says that the US may re-introduce economic restrictions on Iran. Geopolitical tension will increase in the case of economic sanctions. Apart from this, tension of crude will also be available in Saudi Arabia and Iran. At the same time, Anuj Gupta said that due to financial constraints, crude production in Venezuela has decreased considerably. Compared to 2005, the production of crude has remained half, which is a supportive for the oil market. This can lead to sharp decline in supply.
Good data support in China
Commodity Expert Anuj Gupta said that there is hope for good data from China. China, Europe and America have big consolidation of crude. Due to demand impulses in China, crude will get support. However, data in the US is not good. But American production is increasing the gap between demand and supply by which crude will get support.
Prices will be between $ 60 to $ 68
Energy Expert Narendra Taneja says that the past few weeks have seen fluctuations in crude prices. Deficit prices of petrol and diesel are decreasing in crude prices. But there is pressure on crude prices from the restriction of sanctions on Iran. At present, crude prices are unlikely to be low. For the next 6 months, crude will remain in the range of 60 to 68 dollars per barrel.
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