By Srinivas Chowdary Sunkara // petrobazaar // 2nd Dec, 2021.
Brent oil futures prices for Feb delivery slipped 36 cents or 0.5 pct to settle at $68.87 a barrel on London based ICE futures Europe exchange. WTI oil Jan futures prices went down 61 cents or 0.92% to close at $65.57 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices rose 3.6 Yuan/bbl to close at 451.4 Yuan/bbl while MCX crude oil front month futures prices rose Rs.129 to Rs.5013 a barrel during yesterday's session. Brent premium over WTI narrowed down to $3.3 from previous session.
The world crude oil price index curves demonstrated downside momentum yesterday. Both the benchmark prices rallied in the early session that fizzled later on after selling pressure intensified on concerns over new corona variant, Omnicron could cut demand amid global supply builds. Prices went into negative territory later in the session after U.S announced that new variant strain found in the country. Oil complex came under pressure since last week after Funds sold petroleum futures and options last week following the U.S release of emergency stocks, Forecasts of U.S supplies and inflations worries. Turning to weekly data, U.S crude stocks were drawn up by 0.9Mbpd while gasoline and distillates stocks were built up by 4 Mbpd and 2.2Mbpd respectively during the last week. U.S drillers ramped up production to 11.6Mpbd while imports and exports were marginally up. Crude throughput into refinery inched up with no change in operable capacity. OPEC+ meeting is on but no policy decisions are expected today. Today morning, Asian markets are trading in green and prices are expected to be volatile.
Good day to all.
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