crude brent march futures are trading at $76.37 while WTI futures for Feb month are trading at $70.91 a barrel on Tuesday morning during Asian hours. Both the world benchmarks fell around 4 per cent yesterday in bearish mood. WTI traded at $5.35 over Brent during the session.
crude benchmark curves continued to demonstrate downside momentum on prevailing bearish factors existed. KSA cutting prices for its flag ship Arab light crude to Asia prompted demand concerns. Boost in group’s output in the month of Dec to offset supply disruption through red sea compounded to prevailing bearish mood in the crude markets. Higher inventories and higher production numbers also weighed on oil complex. Markets can not rule out ‘escalation of geo-political factors in the middle-east’ factor at this moment.
Putting some light on technicals reported by ICE and CFTC, Money managers added 29532 positions to brent and 35869 positions to WTI for the week to Jan 1st. Speculators started the new year on bearish note since the increase is the second largest increase since 2017. I see markets remain volatile this week.
