BSH: CRUDE Outlook: Oil declined sharply yesterday and the whole world is looking for the OPEC meeting tomorrow. We see that the global trading volumes are also thin as traders await major triggers from the meeting nevertheless yesterday big fall was probably out of the fact that the so-called Pre-OPEC Producer Meet failed to reach onto an kind of consensus. On Tuesday, officials from Venezuela, Saudi Arabia, Mexico and Russia met while finally said that they would monitor prices for now. Markets as of now are divided in half about whether the group would actually declare a production cut or not. We believe there is a higher probability of a cut in output, however the same might be minuscule in and around 500,000 BPD which is surely lower than the current surplus situation in the range of 1.5 to 2 MBPD, as per OPEC’s own sources. We always know that rumour makes the market move and that in exactly what is being noticed. While volatility may remain higher until any concrete result is out we would continue to hold modest bearish stance. We would also thank to our Technical’s which had a very pre-emptive indication for the commodity to trade down. For the day is concerned, we continued to sell oil on pullback. Also today we have the weekly petroleum numbers from the US wherein initial forecast point towards a mixed to moderately weaker number. Overall we suggest selling from higher levels for small profits today.
Posted on: Wed, 26 Nov 2014 09:47:27 +0000
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