Expect Crude oil to trade sideways:
Brent oil rose 1 percent on Tuesday after top exporter Saudi Arabia said it was determined to end a supply glut, while prices also drew support from forecasts o f a further drop in U.S. crude inventories as well as nervousness over tensions in Iraqi Kurdistan. In post settlement trade, prices briefly pared gains before steadying, in response to data from industry group the American Petroleum Institute showing cru de inventories built up while gasoline and diesel drew down. The Saudi energy minister said the focus remained on reducing oil stocks in industrialised countries to their five – year average and raised the prospect of prolonged output restraint once an OPEC – led supply – cutting pact ends. The oil market has been concerned that, once the supply deal expires, producers will ramp up shipments again and cause prices to fall. Minister Khalid al – Falih, told Reuters at an investor conference in Riyadh on Tuesday that global oil demand is expected to grow by 45 percent by 2050 despite an international push for using more renewable sources of energy.
We expect crude oil prices to trade sideways on the back of profit booking after up – move.