Crude Prices Jump Nearly 6 per cent, But Outlook Still Bleak
Crude oil prices jumped almost 6 per cent on Friday after comments by an OPEC energy minister sparked hopes of a coordinated production cut, yet analysts said such a move remained unlikely and that oversupply would persist. International Brent crude benchmarks were trading at $31.80 per barrel at 0139 GMT, up 5.8 per cent, or $1.74, from their last settlement. Reuters market analyst Wang Tao said a technical analysis of Fibonacci retracements showed that “Brent is expected to test a resistance at $32.72 per barrel.” Earlier Andrew Holland, CEO of Ambit Investment Advisors, had noted that, FPI sell-off was due to risk aversion by foreign investors. Global fears are the biggest reason behind FPI selling in recent past. Foreign funds have offloaded their exposure across the emerging markets over concerns about China and falling crude oil prices.