New Delhi, 5 July (IANS). Experts said on Saturday that there may be an improvement in crude oil prices in the near future due to positive signs from the supply side and signaling geopolitical tension.
Although global perception is being affected due to demand related concerns, market experts believe that crude oil prices may rise if the major technical levels are maintained.
West Texas Intermediate (WTI) crude oil prices were softened on Friday. Prices were trading around the range of between $ 65 amid low trading and weak global demand.
However, analysts are pointing to possible changes with major events such as OPEC Plus meeting and US tariff deadline.
Tejas Shigrekar, the main technical research analyst of commodities and currency at Angel One Limited, said crude oil outlook remains mixed, but there are some reasons for cautious optimism.
He said that the demand has been affected due to the slowdown in global manufacturing in China and Eurozone. Also, global supply is still low due to cuts in OPEC Plus production.
“These cuttings led by Saudi Arabia and Russia have helped to prevent a high fall in prices,” he said.
Shigrakar said, “Despite the low estimates of demand from OECD countries, cordinated production restrictions are providing a basis to prices and unless there is no major setback on supply, there is a possibility of strategic procurement supported by strategic procurement to remain in the widespread scope of crude oil future.”
Geophysical risk, which had earlier raised prices, has reduced to some extent after a ceasefire between Iran and Israel. Iran’s new commitment to the nuclear non -proliferation treaty has also helped to calm the market. Whereas there is tension in the South China Sea and the Middle East.
Traders are now focused on the OPEC Plus meeting of July 5, where production growth is expected to be approved for the third consecutive barrels for August for the third consecutive time.
-IANS
SKT/