Energy Weekly Report: Motilal Oswal

ABB Power Products and Systems India | Hitachi ABB Power Grids joint venture commenced operations. (Image: Reuters)

Motilal Oswal's report on Energy Weekly

Oil prices touched levels of $50 for the first time since March, edging higher on optimism surrounding vaccinations, the OPEC+ deal, plus strong demand in Asia. The vaccine optimism seems to continue unscathed due to the back-to-back approvals vaccines are getting and the quicker-than-previously-thought rollout of the first campaigns in key markets. The market will also be looking for progress on new stimulus in the U.S., with a bipartisan group of lawmakers poised to unveil a $908 billion pandemic relief bill, although there’s no guarantee it will pass Congress.

Outlook

Crude markets reflect a market that completely ignores the fragility it is still in for the short-term, as traders have decided to look past it and focus on the eventual back-to-normal once the vaccines are deployed.

For all commodities report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.