By Srinivas Chowdary Sunkara // petrobazaar // 5th March, 2021.
Brent oil prices for May delivery traded $2.67 or 4.17% higher at $66.74 a barrel on London based ICE futures Europe exchange. WTI oil futures to be delivered in April climbed $2.55 or 4.16 pct to settle at $63.83 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices rose 7 Yuan to 405.5 Yuan/bbl while MCX crude oil current month futures prices advanced Rs.199 to settle at Rs.4716 a barrel yesterday. Brent premium over WTI widened moderately by $2.91 a barrel during the session.
The world crude oil price index curves demonstrated upside momentum as the OPEC+ group agreed to keep the production cuts largely unchanged to April while Russia and Kazakhstan will be allowed to increase the production by 130000 and 20000 barrels per day respectively. KSA will be extending its voluntary cuts of 1Mbpd till April. Analysts are in the opinion that cuts are not eased it is a tighter squeeze. With higher oil prices and tighter quotas, The group's compliance rate will be re-tested. On the other hand, Vaccination news also supported oil complex. Both the benchmarks are heading towards weekly gains. Turning to weekly data, Baker Hughes will release U.S rig count later today that may spur volatility. 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