By Srinivas Chowdary Sunkara // petrobazaar // 21st May, 2022.
Brent oil futures prices for July delivery rose 51 cents or 0.46pct to settle at $112.55 a barrel on London based ICE futures Europe exchange while WTI June futures prices surged $1.02 or 0.91 % to close at $113.23 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices moved up 3.5 Yuan to 697.9 Yuan/bbl where as MCX crude oil front month futures prices spiked Rs.161 or 1.9 pct to Rs.8651 a barrel yesterday. Brent traded at a discount of 68 cents to WTI during the session.
The world crude oil price index curves continued to hover up for the second session after falling in previous two session in volatile trading. Both the benchmarks settled higher on Friday as the planned EU phase wise embargo on Russian oil and China easing lockdown restrictions shrugged off signs of bleak economic growth and recession fears. Brent logged in weekly loss while front month WTI futures registered weekly gains for the second week on last trading day to expire as front month. Turning to weekly data, U.S drillers added oil rigs for the ninth month in a row as per Baker Hughes report. On supply side, China sent about 2 Mbpd of crude into storage tanks in April amid the weakest refinery runs since March 2020 and soft domestic demand. It may add some more oil into stock piles in the coming months, Taking advantage of cheap Russia oil. Markets seems to be volatile and traders are cautious and sensitive to any headline from any source.
Good day and happy week end to all.
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