BackCrude oil: Experts suggest some caution as prices hit 11-year high
Crude oil price: Ahead of US Fed meeting, oil prices are expected to remain highly volatile but overall sentiment may remain positive until some news leading to ceasefire in Russia-Ukraine war arrives, say experts
PremiumDue to escalating geopolitical tension caused by Russia-Ukraine war, crude oil prices today hit its 11-year high. WTI crude oil price today hit $116.10/barrel whereas Brent crude oil price today surged up to $117.80/barrel levels. According to commodity market experts, this rally in oil prices today is mainly due to the Ukraine-Russia war and OPEC countries declining to increase production and dilute the demand-supply constraint caused by this Russian invasion of Ukraine. However, they maintained that after gold, oil prices are expected to become highly volatile and hence investors should know their levels while taking any position in WTI crude oil or Brent crude oil. They advised investors to maintain strict stop loss and expected sharp downside and upside movement in crude oil prices ahead of US Fed meeting.
Speaking on the reason for sharp rally in crude oil price these days; Amit Sajeja, Vice President — Research at Motilal Oswal said, "Rising geopolitical tension caused by Russia-Ukraine war and oil producing OPEC countries not accepting the US demand to increase oil production is the major reason for this sharp rally in global crude oil prices. This rally is expected to further continue but it won't be one sided. It is expected to remain highly volatile ahead of the US Fed meeting and we may see sharp upside and downside movement in crude oil prices. So, traders and investors are advised to know their levels and maintain strict stop loss while taking any position in crude oil."
Expecting further rise in crude oil prices; Anuj Gupta, Vice President at IIFL Securities said, "Ahead of US Fed meeting, oil prices are expected to remain highly volatile but overall sentiment may remain positive until some news leading to ceasefire in Russia-Ukraine war arrives. So, one should know the important support for WTI crude oil price and Brent crude oil price in the international market. Currently, oil prices have immediate supports at $107 per barrel levels."
On expected upside targets for WTI crude oil and Brent crude oil; Amit Sajeja of Motilal Oswal said, "Oil prices have strong support at $104 per barrel levels and on the higher side, WTI crude oil prices are expected to go up to $125 per barrel levels whereas Brent crude oil may go up to $128 per barrel mark."
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
