By Srinivas Chowdary Sunkara // petrobazaar // 5th April 2020.
Brent oil futures prices for June settlement jumped $4.17 to settle at $34.11 on London based ICE futures Europe exchange. WTI oil futures to be delivered in May rose $3.02 to close at $28.34 a barrel on late week. In Shanghai, Crude oil main contract futures went up 7 Yuan or 2.53% at 283.5 Yuan/barrel while MCX crude oil April futures prices spiked Rs.431 to Rs.2052 a barrel on Friday. Brent premium over WTI widened to $5.77 a barrel during the session.
The world crude oil bench mark price indexes recorded a single day price surge of around 20 – 25% on April 2nd following the Trump tweet that the Saudi and Russia were expected to lead the producer's group to rein in supplies around 10 -15 Mbpd. Next day both the bench mark futures jumped around 11-14% after the news of scheduled virtual meeting among the OPEC and non-OPEC members on Monday. Within hours, Tensions flared up between two spearheads following the Putin blaming Saudi for slump in oil prices and Saudi lashed back saying that the Russians comments were “devoid of truth”. The meeting stood postponed to Thursday. Analysts predict that the oil prices are going to crater on Monday as the lot of optimism was priced in on Thursday and Friday. Whether OPEC+ alliance will deliver cuts of 10-15 Mbpd and U.S Joins with the cartel are the two questions facing the market now. let us wait and watch. Good day.
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
