Energy Preview: WTI Crude Soars Above $70 Mark

MCX Crude futures are expected to jump in early moves today following extremely bullish sentiments globally. US markets came under pressure following President Donald Trumps announcement of his decision to withdraw from an international agreement intended to limit Irans nuclear program. WTI Crude futures are currently trading at $ 70.62 per barrel right now, up more than 2% on the day. These are the highest levels in nearly four years for the counter. MCX Crude futures closed at Rs 4620 per barrel yesterday and should see a jump of around 2-2.5% in early moves.

Global growth stays strong and that is supporting the commodity on demand side. The International Monetary Fund released its World Economic Outlook (WEO) Report last month, forecasting global growth in the short-term and raising concerns on possible economic downturns beyond the next few quarters. The fund expects global growth will inch up from 3.8% in 2017 — its fastest pace in six years — to 3.9% in 2018 and 2019. Thats in line with its most recent estimate in January. It also upgraded its forecast for US growth in 2018 to 2.9%, up from 2.7% previously.