According to Sushil Finance, expect crude oil prices to trade positive on the back of short covering after drop in prices.
Sushil Finance's commodity report on crude oil
Oil prices rose on Tuesday after OPEC forecast higher demand in 2018 and Russia and Venezuela confirmed their commitment to a production - cutting deal to reduce the global crude glut. In its monthly report, the Organization of the Petroleum Exporting Countries also said the two hurricanes that hit the United States in recent weeks would have a "negligible" impact on demand. About 6.1 million customers were without power following Hurricane Irma, down from a peak over 7.4 million late Monday, according to local utilities. The market was assessing Irma's effect on demand, even as refinery restarts in the wake of Hurricane Harvey boosted expectations for crude oil consumption. The largest refinery in the United States, in Port Arthur Texas, was running at reduced rates, sources told Reuters. U. S. crude stockpiles rose nearly twice expected levels last week as refineries cut output following Hurricane Harvey, while gasoline and distillate inventories drew, industry group the American Petroleum Institute said after the market settled. Crude inventories rose by 6.2 million barrels in the week to Sept. 8 to 468.8 million, compared with analysts' expectations for an increase of 3.2 million barrels. The U.S. Department of Energy's Energy Information Administration (EIA) reports Wednesday
OutlookWe expect crude oil prices to trade positive on the back of short covering after drop in prices.
For all commodities report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.