By Srinivas Chowdary Sunkara // petrobazaar // 2nd Dec, 2020.
Brent oil January futures prices slid 17 cents or 0.36% to $47.42 a barrel on London based ICE Futures Europe exchange. WTI oil futures to be delivered in January dropped 79 cents or 1.74% to close at $44.44 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices slipped 0.7 Yuan or 0.24% to 286.7 Yuan/barrel while MCX crude oil current month futures prices settled down Rs.52 to close at Rs.3273 a barrel yesterday. Brent traded at a premium of $2.87 over WTI during the session.
The world crude oil price indexes demonstrated downside momentum yesterday on surprise build in U.S stocks. Delay in OPEC+ formal meeting to decide on increase in supplies in the new year that left the market in limbo, kept the prices in check. On the supply side news, OPEC+ group agreed to cut supplies earlier this year to support prices as the pandemic cut into fuel demand. It has been widely expected to roll over the cuts into first quarter of 2021 amid resurgence in virus cases and hopes are largely building towards reaching agreement to roll over the cuts. Turning to weekly data, API reported surprise build in U.S crude and product stocks by 4.146Mb, 3.402Mb and 0.335 Mb respectively during the last week that weighed on crude complex. EIA will confirm the numbers later today.
Today, Asian markets opened in red to extend yesterday's losses and it does not demonstrate any firm trend so far. All eyes are on OPEC+ meet and EIA numbers. I expect prices will be range bound today.
Good day to all.
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