By Srinivas Chowdary Sunkara // petrobazaar // 6th January 2020.
Brent oil futures prices rose sharply to $68.6 after gaining $2.35 and WTI oil futures prices spiked $1.87 to settle at $63.05 a barrel on Friday. In Shanghai, Crude oil main contract futures prices went 17.9 Yuan or 3.72% up at 499 Yuan/barrel while MCX crude futures closed Rs.156 up at Rs.4499 on Friday. Brent traded at a premium of $5.55 over WTI during the session.
The world crude oil price indexes spiked around 4% followed by the serious signals that was waiting for as the U.S – Iran war of words finally came to an end with the real escalation actions taking place beginning with the killing of Iran's top commander Qassem Soleimani who was killed by a US drone strike. The market is trying to assess the short term supply disruption in the gulf region that has driven to surge in trade volumes to the highest since the Saudi attacks. On the data side, Bullish U.S government report of drawings in U.S crude stocks also extended support to oil complex.
Today morning, Oil futures prices extended previous session gains by nearly $3 to $4 during the Asian hours, triggered by the further escalation of tensions in the region followed by the Iraq government called on American and other foreign troops to leave the country amid the expected major retaliation from Iran on U.S troops. Analysts are in the opinion that market speculations will drive the oil prices up in the short term.
Good day to all.
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