Crude Oil: Potential rally to $28 and $29 level expected

Analysts are expecting the price level of Crude Oil to improve from the current range of $ 26 per barrel to levels around $ 28 per barrel. The expected upward move is much expected owing to favorable fundamentals which appears to favor price of oil upward.

In this week alone Saudi Arabia and Russia has indicated the potential reduction in oil output by more than 3 Million barrel. This is potentially going to reduce the supply of Oil and shift the equilibrium price at the highest.

Also, the recent actions by most countries to lift lock-down is also adding positive outlook to oil price, since we expect the demand for Oil to start to improve in the medium term. All these combined, will likely give upward momentum for oil price to move to the new levels of $ 28 to $29 per barrel within the next short horizon.

Crude Oil Price