Posted at 11:28 AM , on December 23, 2016
The big story for the Indian economy over the last 2 years has been the dividends from cheap oil. Brent crude fell from a high of $114/bbl in mid-2014 to a low of $28/bbl in Feb 2016. Over the last 8 months, the price of Brent crude has nearly doubled to $54/bbl. In fact, since the OPEC agreed upon supply quotas in its November 30th meet at Vienna, the price of Brent has moved up from $46/bbl to $54/bbl. Here are 3 things that India needs to watch out for in the coming months… Continue reading
Posted at 2:09 PM , on December 21, 2016
For the first time since 2008, the OPEC at its Vienna meeting on November 30th decided to put supply restrictions. In fact, the OPEC went one step ahead. It also agreed upon the sharing of production cuts among the OPEC member nations. But, the question is whether it will really prop oil prices?
Posted at 10:53 AM , on December 12, 2016
The OPEC meeting on November 30th at Vienna actually turned out to be highly productive for the OPEC. The cartel which accounts for nearly a third of global oil production has decided to cut production of crude oil by nearly 1.2 million barrels per day (bpd). That will effectively take the total OPEC production down to 32.5 million bpd. While this will definitely boost the price of oil in the short run, the question is how significant is this cut in production. Continue reading
Posted at 6:23 PM , on March 8, 2016
How feasible is a sharp bounce in the year 2016?
Nobody is willing to believe that oil can bounce by 40% in the year 2016. But then, nobody expected gold to give a return of 18% in two months since mid-December 2015. A recent report by UBS points out that while oil will continue to be under pressure, there is a likelihood of crude oil rallying by as much as 40-50% during the current year alone. That means oil touching a price of nearly $50/bbl from the current Brent crude oil levels of $34/bbl. Continue reading
Posted at 9:47 PM , on August 21, 2015
by- Himanshu Gupta- Research Analyst , Metals and Energy Research
Bloodbath in crude oil prices over past few weeks has sent prices tread water and has traumatized the oil bulls that looked confident for a sustained recovery post the worst sell off in the energy counter after 2008. A notoriously disguised rally that nurtured in the month of March this year from the levels close to $44/barrel at NYMEX and Rs 2700/bbl at MCX helped the prices to gain around 40 % from the lows. It was just the time when the prices caught themselves in an ennui range and bluffed the traders again with the direction of the breakout. Continue reading