By Srinivas Chowdary Sunkara // petroabazaar // 4th April, 2023.
Brent oil futures prices for June delivery jumped $5.16 or 6.47 pct to $84.93 a barrel on London based ICE futures Europe exchange while WTI oil May futures prices rose $4.75 or 6.28 pct to close at $80.42 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices soared 42.3 Yuan to 569.7 Yuan/bbl where as MCX crude oil front month futures traded Rs.416 up to Rs.6615 a barrel yesterday. Brent premium over WTI widened to $4.51 a barrel during the session.
The world crude oil price index curves demonstrated strong upside momentum after producer's group jolted markets with another 1.16 Mbpd production cuts. Both the benchmarks jumped to one year high after OPEC's pledged cuts reached equal to 3.7 pct of global demand. I felt that fresh cuts indented to intensify the rush of short covering and to bring back bulls with ballooning up confidence in the market. The producers group is trying correct the market to ensure stable prices to protect global S&D. U.S expressed displeasure over the decision. On the other side, Analysts warned that higher oil prices will trigger further rate cuts that may take world markets towards severe recession. API numbers followed by EIA confirmations are awaited during the week. Asian markets opened up, adding to previous session gains.
Good day to all.
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