Crude prices surge due to strong buying at lower levels is gained.Crude prices in the international market at $ 26.19 per barrel after falling 23 per cent in the 48 hours up to $ 32.25 per barrel reached.However, this is believed to be increasingly unsustainable. Crude up to $ 35-38 in the short term after the sharp fall may again.
Prices 23 percent in 48 hours
Wednesday (January 20th 2016), the price of crude fell to $ 26.19 a barrel was on, but short-covering and cold in the West increased heating oil demand has been rising strongly.Because of this support was crude and it was closed on Friday rose 32.25 dollars a barrel. The terms of crude has climbed 23 percent in 48 hours.
Friday 9 percent, pushing prices.
In the first 19 days of January, after plunging 17 percent in crude prices showed strong recovery.Wednesday began the recovery has continued in the last trading session of the week. Crude rose 9 percent in Friday session closed at 32.25 dollars a barrel.
Faster is not sustainable
MD Ajay Kedia Commodity KD Bhaskar told the money was buying crude at lower levels and the recovery after heavy winter in the West has great demand.This can be up to 35-38 increasingly crude. It is likely to fall sharply again.
According to the lawyer, CEO, Viren paradigm commodity boom in crude prices is not sustainable, because there is a major change in fundamentals.Iran increased after the supply is likely to see a sharp drop in crude.
Experts are putting $ 20 wager on
Goldman Sachs said in a research note issued on Friday that crude prices are expected to fall to $ 20 more, not upwards of $ 40 a barrel to touch.Paul Horsnel commodity analyst at Standard Chartered, says that previously we had expected crude short-covering.But prices fall again, it is likely much higher and the prices can go down to $ 25.
Why the rise in crude came
This week, crude oil prices in the international market fell to the lowest level in 12 years. However, prices in the domestic market of the 7-year lows touched.But on the lower level shopping boom is strongly rising prices. Worldwide futures traders to cover short positions in crude started.Futures traders taking long positions in crude are now taking short positions, causing prices have risen immediately.
Western countries due to outbreaks of cold heating oil demand has been rising strongly due to the crude oil prices have risen.
Concerns still exist
Crude prices have started to come even though the recovery in the US has been increasing its stock.The US Energy Department said US crude stocks last week, an increase of 40 million barrels recorded.
Iran economic sanctions removal will increase the supply of crude from Iran. After the removal of the restriction to 5 million barrels per day is expected to increase supply.
Kedia said the US dollar is strengthening continually. The continued rise in the dollar, commodity markets could again dominate selling
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