Oil prices expected to decline
Updated
Crude oil trade and strengthening of US Dollar are interrelated.
Market is witnessing strengthening in US Dollar against major currencies and I expect it to continue till first quartile of 2016. (Refer my other post that outlines movement in USDINR)
tradingview.com/chart/USDINR/niVjz1Ij-Range-bound-Long-till-March-2016/
Crude oil is again under pressure and can expect to see it in lower thirties in next few months.
This decline in Oil prices will be partially offset by appreciation in US Dollar.
Still fast growing Indian economy will get partial benefit of this decline in Oil market and on the other hand export oriented Indian Software industry will reap some rewards of weak Indian Rupee.
World will be looking at energy demand and manufacturing numbers from China in this time.
It would be interesting to see Oil price breakout from the wake formation in early 2016!
Market is witnessing strengthening in US Dollar against major currencies and I expect it to continue till first quartile of 2016. (Refer my other post that outlines movement in USDINR)
tradingview.com/chart/USDINR/niVjz1Ij-Range-bound-Long-till-March-2016/
Crude oil is again under pressure and can expect to see it in lower thirties in next few months.
This decline in Oil prices will be partially offset by appreciation in US Dollar.
Still fast growing Indian economy will get partial benefit of this decline in Oil market and on the other hand export oriented Indian Software industry will reap some rewards of weak Indian Rupee.
World will be looking at energy demand and manufacturing numbers from China in this time.
It would be interesting to see Oil price breakout from the wake formation in early 2016!
Note
Expecting selective devaluation in Oil Producing currencies against USD to protect country budgets.
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