Crude Oil prices are expected to trade higher today: Angel Broking

Angel Broking's report on Crude Oil

On Tuesday, WTI Crude prices soared over 20.4 percent to close at $24.5 per barrel after many nations announced their plans to gradually revoke the coronavirus related lockdown which might lead to resumption in economic activities and boost the demand for the Crude. Many European and Asian countries along with some parts of U.S. and some other nations permitted people to go back to work. Resumption in business and industrial activities amid hopes of recovery in Vehicle traffic boosted the demand for Crude and pushed the prices higher. Oil prices were further supported after the Organization of the Petroleum Exporting Countries and its allies agreed to trim their production by 9.7 million barrels per day from 1st May, 2020. Production cuts amid expectation of rising global demand for Crude led to the surge in Crude prices.

Outlook

As per the American Petroleum Institute data, U.S. Crude inventory surged over 8.4 million barrels per day last week which might weigh on Crude prices. However, hopes over rising demand and aggressive output cuts by OPEC might continue to provide some support. Official U.S. Crude inventory data will be published later in the day. On the MCX, oil prices are expected to trade higher today.

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