Crude prices unlikely to break $63/barrel-mark: Credit Suisse

The year 2016 saw biggest annual gain in oil in 7 years with prices hitting 18-month highs on Tuesday, the first trading day of 2017. Oil rallied after the OPEC and other big oil exporters struck a deal to cut production, which will drain a global supply glut.While speaking to CNBC-TV18, Robert Parker of Credit Suisse Asset Management, did not seem too positive about the OPEC deal. He said OPEC has a poor production discipline and it may not even be maintained. Brent crude, which is now USD 55 per barrel, may not rise above USD 63 per barrel, he said. For the Indian economy, he pointed out two negatives. One, the temporary setback due to demonetisation, especially the impact on the services sector and second, the corporate earnings data, which may not be impressive. He sees Sensex downside near 26,000 level. He maintains an optimistic outlook for the US economy and expects 2.5 percent growth. He also expects Dow to break the 20,000-mark.Video to follow...