Brent oil futures for Dec delivery rose $1.49 or 1.65% to $91.39 a barrel while Nov WTI futures are trading 42 cents or 0.485% up to $87.08 a barrel on Wednesday morning at the time of reporting. Both the benchmarks closed unchanged yesterday with brent premium over WTI widened further to $3.24 a barrel during the session.
The world crude oil benchmarks demonstrated upside momentum today after Israel continues to carpet bomb on Episcopal Church hospital where hundreds of medical staff, Patients and civilians taking refuge under Church protection. KSA condemns in the strongest terms and rejects this brutal attack. Jordan cancelled the summit that was to host U.S president which reduces the possibilities of diplomatic solution. Oil markets already factored in the Middle East tensions still seems to be nervous amid the fears of dragging Iran into this dispute that may tighten supplies.
On the data side, API estimated that U.S crude stocks fell by 4.4 Mbpd during the last week trouncing the analysts expectation of 300,000 barrels. EIA will confirm numbers later today. Consensus is on fall that supports bullish sentiment in the market. China’s growth numbers also extending some support to oil markets.
Crude markets are moving cautiously and i dont expect Brent will touch $100 this week.