Spike in oil prices due to supply cuts, US sanctions on Iran & Venezuela, says Nirmal Bang

Kunal Shah, head of commodities & currency research at Nirmal Bang Commodities, spoke to CNBC-TV18 about the current trend in the oil market.

Talking about the oil prices, Shah said, “It seems that no matter how much US oil production is going up right now sanction on Venezuela and sanction on Iran in being on the oil market and if you look at the OPEC production compliance it is very tight. So, considering all this factor I feel you can see some spike in oil prices from present levels also so Rs 4,300 on MCX one can go long for the upside target of Rs 4,367-4,370 and the fundamentals even if the US production is likely to move up further but the production cut of OPEC and problem in Venezuela and Iran is causing oil price to move up.”