By Srinivas Chowdary Sunkara // petrobazaar // 3rd Nov, 2022.
Brent oil futures for Jan delivery gained $1.51 or 1.6 pct to settle at $96.16 a barrel on London based ICE futures Europe exchange while WTI oil Dec futures prices jumped $1.63 or 1.84% to close at $90 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices rose 6.1 Yuan to 698.5 Yuan/bbl where as MCX crude oil front month futures prices went up Rs.107 or 1.46 pct to Rs.7425 a barrel yesterday. Brent premium over WTI narrowed down to $6.16 a barrel during the session.
The world crude oil price index curves continued to demonstrate upside momentum. Both the benchmarks traded high as the market focused on low inventories. EIA confirmed that U.S stocks were drawn last week. Europe embargo on Russia is set to start on Dec 5th., A reaction of Russia's invasion of Ukraine. OPEC out put fell in Oct are the some of the fundamental factors that support oil complex although other financial assets traded low on Fed interest rate hikes. Turning to weekly data, EIA reported that U.S crude stocks went down by 3.1Mbpd while gasoline stocks were drawn by 1.3Mbpd. Distillates are reported marginally increased. U.S domestic production slipped by 100Kbpd. Net imports numbers gone up while exports numbers were down during the week. Crude throughput to refineries pushed up. Refinery operating capacity remained unchanged although utilization was up. Today Asian markets are trading low on strong dollar as per reports.
Good day to all.
Disclaimer: Views and opinions expressed here are personal. This commentary is for information purposes only and not an offer or a solicitation to sell or buy any physical commodities or financial instruments. The views and analysis are based on reliable public information available at the time of writing. This report and its content cannot be copied, redistributed or reproduced in part or whole without the prior written permission of petrobazaar.com