By Srinivas Chowdary Sunkara // petrobazaar // 1st June, 2022.
Brent oil futures for August delivery sank $2 or 1.7% to settle at $115.6 a barrel on London based ICE futures Europe exchange while U.S crude oil July futures prices surged $8.17 or 7.12 pct to close at $122.84 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices slid 22.4 Yuan to 757.2 Yuan/bbl while MCX crude oil front month futures prices turned down Rs.189 or 2.08 pct to settle at Rs.8891 a barrel yesterday. WTI traded at a premium of $7.24 a barrel on Brent yesterday.
The world crude oil price index curves turned down after a report that some producers in OPEC+ group are exploring the possibility of suspending Russia from production cut deal. Since there was no formal push for the group to push Russia from group however KSA and UAE are planning to use their spare capacity going forward. Russian crude output in April dipped by nearly 9 pct. Turning to technicals, Portfolio mangers turned cautious on oil last week amid uncertainty over recession or sanctions will dominate prices over the next six months. Hedge funds and other money managers preferred to sell off in the six most important petroleum futures and options. The hedge fund community still bullish on petroleum with long positions outnumbered bearish short ones. Both the benchmarks ended May higher marking the sixth straight month of gains. API numbers followed by EIA confirmations are awaited. Today, Asian markets opened in green and trading high at the time of reporting. Good day to all.
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