Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities
International and domestic crude prices are trading flat in lackluster trade this Friday afternoon.
The rise remained capped amid concerns that the surge in covid-19 cases in the United States and Europe could witness further restrictions and reduce fuel demand.
Concerns about oversupply remain. Libya’s National Oil Corporation (NOC) said Libya’s oil production quickly returned to previous rates reaching 1.25 million barrels per day (bpd).
Also, since Libya is currently exempt from the restrictions of reducing oil, we could further increase the nation’s production and weigh on sentiment.
The next big event for oil will be the OPEC + meeting from November 30 to December 1. Here, the cartel could discuss whether to maintain current levels of production reduction or to reduce production.
Markets will also look at signs of progress in the Democratic-Republicans’ stimulus talks over the next 2-3 days.
Technically, WTI Crude Oil has been trading above the $ 41.50 levels since the last few days when prices have been steadily rising. However, prices cannot exceed the $ 43.00 levels, meaning a sideways momentum in the $ 41.30- $ 42.80 range for the remainder of the session.
Technically MCX Crude December is holding support near the 3063-3045 levels above what could trade positive momentum indicating sideways momentum to continue in the 3050-3183 level range for the remainder of the session.