By Srinivas Chowdary Sunkara // petrobazaar // 3rd March 2020.
Brent oil futures prices for April settlement rose $1.38 to close at $51.9 on London based ICE Futures Europe Exchange while WTI oil futures prices to be delivered in April gained $1.99 to settle at $46.75 a barrel on NYMEX. In Shanghai, Crude oil main contract futures prices rose 4.7 Yuan or 1.29% to 367.9 Yuan/barrel where as MCX current month crude oil futures in India traded Rs.168 up at Rs.3431 yesterday. Brent traded at a premium of $5.15 over WTI during the session.
The world benchmark crude oil futures indexes turned up yesterday on hopes of deeper production cuts by OPEC+ clan. Much of the expansion in risk appetite was triggered by the stimulus provided by the central banks. Yesterday's gains after six sessions clawed back some of the last week's losses, Sparked by fears of corona virus outbreak. Turning to OPEC+ meeting, The cartel is expected to propose 1Mbpd cuts to prop up oil prices during the scheduled meeting this week. Is Losing a market share is a right strategy for producer's group to maintain price? I dont think so. Russia is prepared to accept $50 price tag for oil, Other members are in dream of above $80. It may leverage the economy but may not be the solution. Analysts warned that oil markets will hear rumblings for another crash in the event of in action by OPEC+. API numbers are awaited later today. Asian markets are continued to upswing today morning.
Good day to all.
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