Crude oil prices are trading at multiyear highs and we have seen $61 per barrel breach on the Brent prices. It is trading at 20 percent up for this year for the crude oil prices. Fundamentals have been supportive, it clearly has been about a lot of speculative money moving in the case of energy as well. Vandana Hari of Vanda Insights expects crude oil to be in the range of $55-65 per barrel and at this point in time, it clearly looks bullish when it comes to crude prices.

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“Keep an eye on what OPEC, the Saudi’s decide in about a months’ time, they will be very keen to start putting more oil back into the market, so one way or another there will be more supply coming in response to this high prices and high demand so perhaps we could see $55-65 per barrel. I wouldn’t go much higher than $65 because as I said I think supply will return.”

Hari said, “I would suggest looking at daily case count of the coronavirus on a global level and you will see a very sustained and steep drop in cases from January, so we are looking at a 40 percent drop in daily cases. That is giving the market a lot of optimism that maybe this pandemic is behind us and we are going to see demand recover much before vaccine and immunisation produce the desired effect.”

She added, “Few things to keep in mind is that we don’t know a lot of things about this pandemic, so while there is hope and optimism that maybe the worst is behind us—we cannot take that for granted. The vaccination program is going to take months to cover the whole world, there is a new constraint which has also raised a lot of concerns. So all of these factors are going to be there.”

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(Edited by : Ajay Vaishnav)

First Published:Feb 9, 2021 2:34 PM IST