Brent and WTI price trends by Srinivas Chowdary Sunkara as on 3rd July, 2023.
Brent Sep futures prices are unchanged at $74.9 a barrel while WTI futures for August delivery inched up 2 cents to $70.66 a barrel today during Asian hours. Both the benchmarks lodged weekly loss for fourth consecutive week and for 4th straight quarter. Prevailing bearish sentiment of gloomy world economy, Fears of increase in interest rates that may crimp oil demand outweighed the support extended by strong weekly numbers.
On the supply side, KSA extra supply cuts of 1Mbpd from July 1st is the only supporting factor prevailed in crude markets. On the technicals side, Money managers reduced their net length in both brent and wti long positions while short positions rose during the week ending June 27th. Brent curve is in steep backwardation that is weighing on oil benchmarks.
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