By Srinivas Chowdary Sunkara // petrobazaar // 4th May, 2022.
Brent oil futures for July delivery fell $2.61 or 2.43 pct to close at $104.97 a barrel on London based ICE futures Europe exchange while WTI oil June futures prices slid $2.76 or 2.62% to settle at $102.41 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices remained unchanged at 673.4Yuan/bbl where as MCX crude oil front month futures prices dipped Rs.183 or 2.27% to Rs.7892 a barrel yesterday. Brent traded at a premium of $2.56 over WTI yesterday.
The world crude oil prices index curves moved down yesterday as demand fears stemmed from China lockdown outweighed EU embargo over Russia oil. Oil markets are trading volatile amid uncertainty over gloomy economic outlook and Inflation fears persist across the market. Global manufacturing growth has started to decelerate on rising cost of energy and raw materials amid extended war between Russia-Ukraine. On the technicals side, Hedge managers and money managers trimmed both the bullish long and bearish short positions last week to reduce risk exposure amid elevated volatility. Turning to weekly numbers, API estimated that U.S crude, Gasoline and Distillates stocks are drawn by 3.479Mbpd, 4.5Mbpd and 4.457Mbpd respectively while Cushing stocks are predicted to be ballooned up. Consensus is on drawings. EIA will confirm numbers later today. Today, Asian markets are opened in green zone, Clawing back some of yesterday's session losses. Both the benchmarks are trading high at the time of reporting. Traders are in alert, Minute to Minute headlines are kept in focus. Oil markets are very likely to be volatile and any headline will spur more volatility.
Good day to all.
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