Crude Oil 14th Jan 2016
Regular readers of this website are very well aware that since 90/95 $/BBL we have been predicting a panic bottom price for crude oil. Last year we had also mentioned that if 38 $/BBL holds till Jan 2016 then we could see Nymex crude oil bouncing back from there but after decent consolidation in the range of 38-49 crude oil broke down and now is in final stages of panic bottom formation of 21$/BBL. During this panic bottom formation we see massive problems for the Oil Producers as 83 percent of all oil producers in the world today are pumping in a loss. So that will add fundamental support to the price sooner than later.
Overall after the panic bottom of 21$/BBL happens we see crude oil coming back towards 48-52$/BBL so at lower levels from a Indian Stock market perspective we must be looking to buy Cairn India, GAIL and RIL also.
RIL 4G launch around last week of April 2016 will add to value to the company. We expect aggressive pricing by Rel Jio. 51Rs Per GB price is expected to be the price for 4G LTE services.
Previous update on crude oil prediction is given below
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