By Srinivas Chowdary Sunkara // petrobazaar // 6th Jan, 2022.
Brent oil futures for March delivery rose 80 cents or 1 pct to settle at $80.8 a barrel on London based ICE futures Europe exchange. WTI oil futures for Feb delivery traded 86 cents or 1.12 % up to close at $77.85 a barrel on NYMEX last night. In shanghai, Crude oil main contract futures prices climbed 8.7 Yuan to 502.8 Yuan/bbl while MCX crude oil front month futures prices settled Rs.54 or 0.94 pct at Rs.5820 a barrel yesterday. Brent premium over WTI inched down to $2.95 during the session.
The world crude oil price index curves continued to show upside momentum on strong weekly crude numbers. Both the benchmark futures prices extended gains despite of the fact that suppliers council stick to existing policy of adding 4,00,000 bpd in the month of Feb. It seems that OPEC+ group will probably struggle to reach the targeted number of supply increase due to difficulties faced by member countries including Nigeria, Angola and Libya to ramp up production. Turning to weekly data, EIA reported that U.S crude stocks dropped by 2.1Mbpd while gasoline and distillates stocks were surged by 10.1Mbpd and 4.4Mbpd respectively since the product demand was hunkered by travel restrictions by the government on rising Omicron cases across the country. U.S production numbers remained unchanged while imports and exports numbers dented where as crude inputs into refineries pushed up. Refinery operable capacity remained unchanged with utilization edged up. Today, Asian markets opened in bearish mood, Trading in red at the time of reporting.
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