Brent oil prices rallied on Monday, surging past the $70 a barrel mark after the largest-ever disruption of crude production in Saudi Arabia amid drone attacks on its key facilities. The disruption, analysts say, may keep oil prices elevated in the near term.
"Global oil supplies may be adequately met through large inventories and strategic reserves; however, moderation in oil prices will depend on full restoration of Saudi’s production, which may at least take a few weeks. Any further escalation of geopolitical tensions in the middle-east region may add to the woes," said analysts at Kotak Securities in a recent report.
Here's how the stocks of oil marketing companies (OMCs) look on the technical charts:
Nifty Energy Index:
The index has been consolidating in the range of 14,730 – 13,750 since August. The formation seems like triple-bottom and a breakout would mean can take the index to the 15,000 mark. The further rally from there can see the index hit 15,400 – 15,500. The trend remains positive, as the index has been constantly trading around breakout levels from the last four sessions. CLICK FOR CHART VIEW