In the special edition of Editor’s Take, Zee Business Managing Editor Anil Singhvi believes that crude oil is currently in a range-bound trade between $105-120 per barrel, mainly because of a strong global lobby with respect to crude and noted that it isn’t in a rush to break this range by either side.
Brent crude futures extended gains on Tuesday as a strike in Norway is expected to disrupt oil and gas output, fanning tight supply worries, according to a Reuters report.
The crude trades in a range of $105-110 per barrel on fear of recission, low demand, and economic slowdown concerns. Similarly, on the news of supply concerns and other geopolitical situations it rose to $120 per barrel levels, the managing editor opined.
The moment crude is at $120 per barrel levels, bad news with respect to crude appears and same happens in reverse when it comes around $105 per barrel, Singhvi said.
भारतीय बाजार के लिए क्या है ट्रंप कार्ड?
कच्चे तेल में 2% उछाल से बाजार में कितना डर?
किस रेंज के नीचे कच्चे तेल में ज्यादा डर नहीं?
— Zee Business (@ZeeBusiness) July 5, 2022
He added until the Russia-Ukraine conflict doesn’t come to an end officially, and clarity on the US recession, crude oil is difficult to get out of this range and seems it is in no hurry to break this range.
The crude oil on Monday rose around $2. Singhvi termed this as not a much concern, but neither it is good for Indian markets and the economy.
On Tuesday, Norwegian offshore workers began a strike that will reduce oil and gas output, the union leading the industrial action told Reuters. The strike is expected to reduce oil and gas output by 89,000 barrels of oil equivalent per day (boepd), of which gas output makes up 27,500 boepd.