Here is a verbatim transcript of Manisha Gupta’s comments on CNBC-TV18. Also watch the accompanying video.
It’s the February Nymex crude which is holding above USD 40 per barrel. We have seen good gains in the day today. The January crude decline nearly 27% in the last week before expiry there but the important point is USD 40 per barrel is still holding. There are a lot of factors which are supporting the prices as well. Apart from OPEC (Organization of the Petroleum Exporting Countries) we have seen statements come out from Saudi Arabia and Kuwait also. They are saying that they pledging that they would comply with the output cuts and we have also seen US economic stimulus plan, weak US dollar all of that supporting the prices.
The CFTC (Commodity Futures Trading Commission) also reports increase in net long positions from 10,000 so 64,000 contracts that means more people are now betting on higher crude prices.
There have been geopolitical concerns as well as gunmen attacked vessels in Nigeria and some Russians have been kidnapped that also are supporting the prices but gains are expected to be limited as we still are into a global recession here. But an immediate range is between USD 40 per barrel on the lower side to USD 47 per barrel on the higher side.
