There is a likelihood that crude oil prices will hit $100 per barrel in 2023. It is advised to invest in oil at around Rs 6800 per barrel with a potential target price of Rs 7100 per barrel.

2023 might be a better year for oil prices than 2022. As money managers extended their long positions after Brent breached $80 and reached $86.66 yesterday on the anticipation of rising oil demand from China and the rest of the world, we think the price will remain over $90. The IEA and OPEC both stated in their reports that they anticipate an increase in the demand for crude oil in 2023. In the current year, the demand for oil will increase to 101.2 million barrels per day, and by 2030, it will reach 106 mb/d. In 2023, the world's oil consumption will increase by 1.5 mb/d, with China accounting for 650,000 b/d of that growth after the country abandoned its strict zero-Covid policy. If crude oil breaches the price range of 6760-6800, it will form a higher high and higher low pattern on the daily chart, shifting the medium and long-term trend from bearish to bullish. Traders are advised to wait for the breach before taking new long positions, as in December 2022 and January 2023, crude has repeatedly reversed from that zone. It is recommended to buy above 6800 for potential movement up to 7100 with a stop loss at 6700 in the MCX Feb contract. Major producers in the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, collectively known as OPEC+, have struggled to raise their production levels. The market also reacted to attacks on United Arab Emirates by Yemen's Houthi group. However, the greater picture here is that prices are still basically being carried along despite all the geopolitical uncertainties and supply side worries.