Outlook for oil prices blurred amid growing uncertainties
Starting January, crude oil production cuts from Opec and allies will come into play. While this is anticipated to support crude prices, the impact of output cuts are expected to reflect after some weeks
Despite Wednesday’s huge relief rally, crude oil prices remain as much as 38% lower compared to their peak in early October. This has brought immense comfort to India, a large importer of the commodity. Brent crude prices are now at around $53.5 a barrel, down from $86 on 3 October. For some days now, oil markets have been under pressure driven by the broader weakness in financial markets. There are concerns on global economic growth. The US government shutdown and rising tensions between the US and China have made investors anxious. Besides, supply from the US has been be higher than expectations.