Oil prices hit 18-month highs on Tuesday but Robert Parker of Credit Suisse says high oil prices are not good for India. He said downside for Sensex is near 26,000 level.
Oil prices edged down on Wednesday in quiet early Asian trading as the market waits to see how OPEC and non-OPEC members carry through on planned supply cuts in the new year.
Speaking to CNBC-TV18 David Lennox of Fat Prophets said that he doesn‘t see much of an upside in crude prices for either Brent or WTI. He hasn't changed his view on prices for Brent which stands at USD 55 and USD 50 for WTI.
The drop in US oil inventories in yesterday's weekly US report added to momentum after last week's OPEC announcement of a plan to cut output.
Crude prices are likely to see further weakness this year, says Thomas Pugh, Commodities Economist at Capital Economics in an interview to CNBC-TV18.
On the downside, he said, US' non-farm payrolls, factory orders from Japan as well as emerging market indicators aren't looking good, says Miswin Mahesh, Energy Analyst at Barclays.
A clear rally is visible in energy sector with oil rising to USD 51 a barrel mark. Agriculture sector has also seen significant gains especially in sugar.
Beyond strong investment appetite from financial traders, analysts said crude was receiving support from a falling dollar, which has shed 5 percent in value against a basket of other leading currencies since the beginning of the year.
Speaking to CNBC-TV18, Luk says there are expectations of European Central Bank (ECB) and Bank of Japan to ease monetary policy further, which will help in easing liquidity.
Speaking to CNBC-TV18‘s Meneka Doshi Dan Yergin, Chairman, IHS Cambridge Energy Research Associates says oil prices are expected to remain low for atleast this quarter and the next.
Crude is currently below USD 60 per barrel as lower crude prices will aid margins for the OMCs.
According to the brokerage, acceptance of the new formula for FY16, short-term upside in Brent and return of Ratna/R-Series block are the near-term triggers for the stock. However, a sharp fall in oil price may be a potential risk.
The group meets on Friday following a two-day seminar featuring the chief executives of the world's biggest energy groups, including BP and Exxon , companies whose fortunes have been abruptly altered by OPEC's decision to abandon efforts aimed at sustaining oil prices at more than USD 100 a barrel in favour of defending market share.
Morgan Stanley remains overweight on stellar results driven by strong refining and marketing.
As per a private business survey, China, the world's second-largest oil consumer, posted its biggest drop in factory activity in a year to 48.9 in April.
Oil analysts say the strong production in the US should ultimately wind down, as the output of some wells in operation declines and more wells are shut in. But for now, as seasonal factors like refinery maintenance affect demand, US production could be a catalyst for even lower prices and a new bottom for crude.
USD 106 per barrel is how much the crude prices could slip to but it will not ease the process of importing crude too much to a country like India. It will be pretty much unchanged. In an interview to CNBC-TV18, PP Upadhya, MD of MRPL spoke about whether the crude prices will impact them or not.
Brent oil rose above USD 109 a barrel on Monday after promising China data, but prices may struggle to hold on to gains as risk premiums come off after Iran and the United States signalled a fresh will to end the dispute over Tehran's nuclear programme.
China's refinery crude throughput fell three percent in April from March, its lowest daily rate since last September, as refineries entered maintenance season.
Brent crude oil prices closed below USD 100 a barrel on a second day of modest gains on Friday, after surpassing USD 100 earlier in the session and recovering some ground after a steep six-day decline.
In an interview with CNBC-TV18, T Gnanasekar, Director at Commtrendz Research & Fund Management suggests selling gold on rallies up to Rs 30,600-30,650 per 10gm with stop loss for this trade at Rs 30,800 per 10 gm and target at around Rs 30,350 per 10gm.
Brent crude edged up towards USD 111 a barrel on Monday after a four-day decline spurred by worries over a fragile global economy, with supply risks supporting prices as violence in the Middle East intensified.
Brent futures rose for a fourth day in Asia on Tuesday, reaching more than USD 116 per barrel on persistent hopes for stimulus measures from central banks in the United States and Europe, with key policy meetings this week and next.
Oil fell below USD 96 a barrel on Monday to the lowest level since February 2011, as a pro-bailout vote in Greece failed to ease fears about the euro zone, sending crude lower with the euro, stocks and other commodity markets.
RBI deputy governor Subir Gokarn on Monday told CNBC-TV18's Gopika Gopakumar that the lower-than-expected fourth quarter GDP and falling crude prices provided elbow room for the central bank to cut rates.