By Srinivas Chowdary Sunkara // petrobazaar // 6th December 2019.
Brent oil futures prices changed a little to close at $63.39 and WTI oil futures prices settled unchanged at $58.43 last night. In Shanghai, Crude oil main contract futures rose by 7.2 Yuan or 1.61% to 455.7 Yuan/barrel while MCX crude oil futures prices settled Rs.23 down at Rs.4161 yesterday. Brent premium to WTI narrowed at $4.96 a barrel.
The world crude oil price indices moved steady to slightly firmer on Thursday despite of deepest cuts planned during OPEC + meet yesterday. Putting a light on Vienna, A ministerial panel of key members of the OPEC and its allied producers led by Russia known as OPEC+ recommended deepening of output cuts by 500,000 bpd in the first quarter of 2020. The deal would apply for the first three months of 2020 without an extension and would exclude condensates from the cuts for the non-OPEC allies like Russia. The producer's club see some risks involved in the first quarter of 2020 due to lower seasonal demand for refined products and for crude oil as per Russian energy minister. The group will meet on Friday for voting on the recommendation. Turning to weekly data, U.S commercial crude stocks were drawn by 4.9Mb while gasoline and distillates stocks were piled up. U.S crude production numbers unchanged at 12.9Mbpd during the last week.
Today morning , Crude oil futures prices opened with gap down during Asian hours and it does not demonstrate any firm trend so far. I feel deepening cuts already priced into market. Markets will shift focus on trade deal, share of cuts among the group and compliance reports.
Good day to all.
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