By Srinivas Chowdary Sunkara // petrobazaar // 5th May, 2022.
Brent oil futures for July delivery spiked $5.17 or 4.93 pct to close at $110.14 a barrel on London based ICE futures Europe exchange where as WTI oil June futures prices surged $5.4 or 5.27% to settle at $107.81 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices were not published while MCX front month futures prices traded Rs.341 or 4.32 pct high to settle at Rs.8233 a barrel yesterday. Brent premium over WTI narrowed down to $2.33 a barrel during yesterday's session.
The world crude oil price index curves demonstrated upside momentum yesterday after world's largest trading bloc, EU spelled out plans of phase out ban on Russian's oil that alarmed supply tightness, Pushed oil prices up yesterday. EU imports around 3.5Mbpd of Russian oil apart from gas supplies. Analysts say that EU is reluctant to avoid full ban of Russia oil since the bloc is not clear of its plans to compensate the Russian energy. On the other hand, Russia is offsetting its losing business with EU with India and China. China has been building ref capacity where most of the surplus resides yet it is not available to the world due to strict government quotas. OPEC meeting is due today and the group is expected to maintain existing stand of gradual opening up of taps. Turning to weekly data, EIA reported marginal decrease in U.S crude and product stocks last week. Crude, Gasoline and Distillates stocks are drawn by 1.8Mbpd, 2.2Mbpd and 2.3Mbpd respectively during the last week. Domestic production numbers remained unchanged while export numbers signaled tightness in the global market. Today, Asian markets opened in green zone adding to yesterday's gains. Markets are in volatile mood and trading needs be with caution. Good day to all.
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