Crude oil prices have been volatile in the year 2019 but they are on the track for their biggest annual rise since 2016.
Brent has gained about 24 percent in 2019 and WTI has risen roughly 36 percent for the year.
Supported by a thaw in US-China trade dispute and supply cuts pledged by the Organisation of Petroleum Exporting Countries (Opec) and its allies, both the benchmarks are set for the biggest yearly gain in three years.
"Ever since December 6 when Opec decided for deeper output cuts from March 2020 onwards, the sentiment has turned bullish. Tension in the Middle-East is another positive factor. Hence in the anticipation of lower supplies, the market is positive,” said Jigar Trivedi, Fundamental Research Analyst – Commodities, Anand Rathi.
On the domestic front, MCX crude oil has appreciated by nearly 10 percent in December.
Given the 10-percent rise, a possibility of technical correction could not be ruled out, said Trivedi, adding that the trend, however, remains positive.
Going ahead, the rally in crude oil prices is believed to sustain in the upcoming six months of the year 2020.
Trivedi expects WTI oil to find support at $58/bbl and move higher towards $64-67.5 per barrel.
On MCX, Crude oil may trade in range facing resistance at Rs 4,600 per barrel while taking support near Rs 4,250 per barrel.
First Published: IST