Have crude oil prices found a bottom?

oil’s long price slide might be ending, feel some experts. Last Friday, the price of Brent crude, seen as a benchmark for what India uses, saw a low of $75.3 a barrel — it is now trading around $79. The fall has been nearly a third from its high seen in June, only five months earlier Stock Market Trading Tips

However, feels T Gnanasekar, Director, CommTrendz: “The technical picture suggests Brent crude has found a bottom. Though Friday’s rebound was mostly a short-covering and profit-booking one, there are chances that prices might have bottomed out for the time being.”

Still, to sustain above technical levels, a commodity requires some demand or a fundamental support. Gnanasekar believes, “Winter demand will set in soon and that might support prices Nifty Trading Tips

Another factor could be a cut in production by the Organization of the Petroleum Exporting Countries (Opec), which a meeting on November 27. Earlier, Opec used to say $100 was the safe price below which it would not intervene. The price is well below this, partly because its stronger members were talking down the prospect of a cut in output quotas.

Also, at some point, a lower price will affect new projects. So far, no report has come of the dropping new and big exploration. BP and Total, major entities in this field, have both indicated they will proceed with existing projects even at $80/bbl. BP’s chief executive, Bob Dudley, was quoted last week as saying lower prices would impose more discipline on the oil industry Finamncial Astrology Trading Tips

The International Energy Agency feels a price of $80/bbl would result in a 10 per cent fall in US oil investment in 2015.

Opec secretary-general Abdalla Salem el-Badri is trying to find a balance. He has said, “Opec is looking for a reasonable price, at which producers and consumers can live together Personal Numerolopgy Tips