According to Angel Commodities, expect oil prices to trade lower today on account of profit booking at higher levels while supply side continues to create bearish sentiments, rise in OPEC output will further exert downside pressure on oil.
Angel Commodities' report on Crude Oil
WTI oil prices declined by 2 percent on Thursday to close at $48.6 per barrel on fears of slowing demand amid lingering concerns over a global over supply of crude. U.S. stock indexes fell sharply on Thursday, with the Dow and the Nasdaq posting triple - digit point declines, as investors fretted over escalating tensions between the U.S. and North Korea. OPEC said its oil output rose by 17 3,000 bpd in July to 32.87 million bpd, led by the exempt producers plus top exporter Saudi Arabia, citing figures it collects from secondary sources. Crude prices are down nearly 7 percent so far this year, pressured by concern that output cuts by OPEC and its partners may not eliminate the global crude glut. On the MCX, oil prices declined by 0.9 percent to close at Rs.3128 per barrel.
OutlookWe expect oil prices to trade lower today on account of profit booking at higher levels while supply side continues to create bearish sentiments, rise in OPEC output will further exert downside pressure on oil. On the MCX, oil prices are expected to trade lower today, international markets are trading lower by 0.64 percent at $48.28 per barrel.
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