By Srinivas Chowdary Sunkara // petrobazaar // 5th Feb, 2022.
Brent oil futures for April delivery rose $2.16 or 2.37 pct to settle at $93.27 a barrel on London based ICE futures Europe exchange. WTI oil March futures prices climbed $2.04 or 2.26 Pct to close at $92.31 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices are not published. MCX front month futures prices ended the session with a high of Rs.231 or 3.46 pct to Rs.6915 a barrel yesterday. Brent premium over WTI narrowed down to 96 cents during the session.
The world crude oil price index curves continued to demonstrated upward momentum as both the benchmarks extended rally into a seventh week on supply concerns amid frigid U.S weather conditions and geo-political tensions. Brent logged in 3.6 pct weekly gains while WTI registered 6.3% rise during the week. The prices were fueled up during the last two days by buyers piled up for futures contracts due to expected tightening of physical stocks in near future. A weekly report of depleting U.S distillates, Signaled booming manufacturing and freight demand in turn will boost crude demand that will put upward pressure on oil prices. Analysts are not ruling out oil prices reaching $100 in short-term however downside risks are plentiful, Including Omicron setbacks on demand, economic growth concerns and financial markets corrections as the central banks fight inflation. Tight oil supplies pushed six month market structure for WTI into steep backwardation of $9.06 a barrel on Friday. Since money managers raised their net length in the week ending Feb 1st, Oil markets are expected to continue rally in the short term.
Good day and happy week end to all.
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