Brent and WTI price trends by Srinivas Chowdary Sunkara as on 2nd Aug, 2023.
Brent oil futures for Oct delivery rose 52 cents to $85.51 a barrel while WTI futures for Sep delivery are trading up 70 cents to $82.07 a barrel on Wednesday morning during Asian trading hours. Both the benchmarks closed lower on Tuesday halting three straight days gains after reaching their highest since April. Brent premium over WTI narrowed down to $3.54 a barrel during the yesterday's session.
Fundamentally speaking, Billish weekly numbers from API showing much steeper than expected fall in U.S stocks is the supporting factor to oil complex. EIA will confirm numbers later today. Consensus is on draws. Gasoline drawings showed build in demand that fanned positive vibes in the markets. On the technicals front, Hedge funds and other money managers purchased the equaling 52 Mb in the most important petroleum futures and options while Fund managers bought a total of 229Mb of the four weeks since June 27 as per report. Markets observed that KSA extended cuts started depleting stocks across the world that pushed short-covering by hedge funds. Let us wait for weekly numbers and JMCC meet outcome during the week.
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