By Srinivas Chowdary Sunkara // petrobazaar // 3rd Sep, 2019.
Brent futures prices for Nov settlement decreased by 59 cents to $58.66 and WTI futures prices to be delivered in Oct closed down by 26 cents to $54.84 a barrel last night. Shanghai crude oil main contract futures dropped by 3.8 Yuan or 0.87% to 431.5 Yuan/barrel while MCX crude futures prices closed up with insignificant changes yesterday. Brent premium to WTI further narrowed to $3.82 during the last session.
The global crude benchmark price index weakened on escalation of trade tensions, Rising concerns over slowing global economy and bleak demand outlook, Post implementation of U.S and China's new import tariff wef Sunday. Trump indicated a hope for further talks but market gave up the protracted stand off between the two countries and looking towards central bank easing to shore up the risk appetite. Turning to weekly data, US drillers removed another 12 oil rigs from operations for the week ending Aug, 30th and rig numbers are declined to its lowest since January for the ninth straight month in a row.
On the supply side, OPEC members rose output in August for the first time this yeas as the higher supplies from Iraq and Nigeria outweighed cuts by KSA and declines from Iran. There was not much of change seen in production from Russia, Saudi while US pushed up around 300 Mt during the last two months. In US, Threats from Hurricane Dorian continue to exist. API estimates are due to release. Asian markets are trading down this morning and it does not indicate any firm. Fundamentally speaking, Markets are in a bearish mood. Good day.
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