By Srinivas Chowdary Sunkara // petrobazaar // 17th Nov, 2021.
Brent oil futures prices for Jan settlement inched up 38 cents or 0.46 pct to settle at $82.43 a barrel on London based ICE futures Europe exchange. WTI oil Dec futures prices edged down 12 cents or 0.15 pct to close at $80.76 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices rose 11.6Yuan/bbl to 516.1Yuan/bbl while MCX crude oil front month futures prices went up Rs.58 to Rs.6034 a barrel yesterday. Brent traded at a premium of $1.67 over WTI during yesterday's trading.
The world crude oil price index curves continued to turn down yesterday as the prospects of tight global supplies offset expected return of barrels from OPEC group and prevailing concerns over rising infections in Europe. Turning to weekly reports, API estimated that U.S crude stocks will be up by 0.655Mbpd while gasoline and distillates stocks are drawn by 2.792Mbpd and 0.107Mbpd respectively during the last week. EIA will confirm the numbers later today and consensus is on crude build. Putting some light on monthly reports, IEA said that higher oil prices could provide strong incentive to increase production that will halt price rally. OPEC report said that oil surplus is expected as early as December and market will remain oversupplied next year. OPEC further said that demand recovery halted as the higher oil prices hampered economic recovery from pandemic. Analysts are in the opinion that oil markets are still bullish due to strong physicals but lack of shorts temporarily halted rally. Today, Asian markets opened in red and trading bearish mood. Expected bearish weekly numbers will continue to weigh on oil prices. Good day to all.
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