It’s a typical year ending when you have the volumes lower but the movements are quite exaggerated. We have seen more than 4% of gains in terms of crude prices. The US markets are yet to open and you wouldn’t know where they would go because the next week may be thin and we would see not much happening there because more participants will be out of the market then.
We have seen some short covering and this is because of the weak US dollar that we have some support coming back into the prices, we have seen a decline of 32% in the month of December and today is where you see some short covering happening, there have been some supports happening from producers and prices taken on a bit of a higher side.
The bottom is still not in place, with the kind of statements we have seen that have come from Saudi Arabia, Russia and UAE that they would comply with OPEC Quota and also cut production and exports as what is supposed to be supporting the prices right now. Apart from that we also saw decline in crude inventories and heating oil inventories because of heating oil demand in the colder areas of US and that is also supporting the prices but the range is quite broad right now, we are looking at a support of USD 33 per barrel in the market while on the higher side USD 43 per barrel is still a resistance.
