By Srinivas Chowdary Sunkara // petrobazaar // 3rd Nov, 2021.
Brent oil futures for Jan delivery inched up 1 cent or 0.01 pct to close at $84.72 a barrel on London based ICE futures Europe exchange and WTI oil Dec futures prices edged down 14 cents or 0.17% to settle at $83.91 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices slipped 36 yuan to 534.8Yuan/bbl while MCX crude oil front month futures prices went down Rs.36 or 0.57 pct to Rs.6257 a barrel yesterday. Brent premium over WTI narrowed down to 81 cents during the session.
The world crude oil price index curves moved flat in choppy trading, yesterday. Both the crude oil benchmark prices marginally changed as the markets are looking for direction in uncertainity over OPEC+ group bolding market back and ahead of analysts expectation over industry group bearish numbers. API said that U.S crude oil stocks mounted up 3.594Mb while gasoline stocks were drawn by 552k where as distillates stocks were piled up by 573K. The institute also said that cushing inventories are expected to be down last week. EIA will confirm numbers later today and consensus is on build up. On the technicals side, Hedge funds stopped buying oil as prices touched multi-year's high that fueled inflation worries. Fund managers did small additions and small reductions due loss of momentum in short term. Portfolio managers are bullish on distillates. WTI is being supported by sharp draws across delivery hubs that pushed into steep backwardation supported near term prices. Today, Asian markets opened in red, adding losses. Markets are looking at weekly numbers and upcoming OPEC+ meet this week.
Good day to all.
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