Crude can touch $55 per barrel by year-end: Fat Prophet

Crude can touch $55 per barrel by year-end: Fat Prophet

David Lennox of Fat Prophets says that the market will be disappointed if it is only a production freeze at Doha.

Among commodity assets, crude prices hit highest levels for 2016, with Nymex crude above USD 40 per barrel, on optimism that major producers will strike an output freeze deal next month amid soaring gasoline demand in the US.

Crude prices on Thursday hit its highest level for 2016 with Nymex surging five percent to trade at USD 40 per barrel and Brent trading at USD 41 per barrel.

The crude moved higher on back of hope that major producers will strike an output freeze deal in April amidst rising gasoline demand in the US. Saudi Arabia and non-OPEC producers led by Russia are scheduled to meet at Doha on April 17.

David Lennox of Fat Prophets says that the market will be disappointed if it is only a production freeze at Doha. With increasing pressure on the supply side, one could see some cuts on supply side as well, he says.

Going towards the Doha meet, Lennox expects crude to touch USD 45 per barrel, but has a year-end target of USD 55 per barrel.

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Source:Moneycontrol.com