By Srinivas Chowdary Sunkara // petrobazaar // 7th May, 2022.
Brent oil futures prices for July delivery went up $1.49 or 1.34 pct to close at $112.39 a barrel on London based ICE futures Europe exchange while U.S crude oil June month futures prices rose $1.51 or 1.39% to settle at $109.77 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices advanced 4.6Yuan to 697.7 Yuan/bbl where as MCX front month futures prices traded Rs.368 lower to Rs.7885 a barrel yesterday. Brent traded at a premium of $2.62 a barrel over WTI during the session.
The world crude oil price index curves continued to hover up as the fundamentals are bullish across the market. Both the benchmarks traded high on impending EU sanctions on Russia oil mounted supply fears that shrugged off bleak economic outlook. Oil futures logged in straight second weekly gains after 5 pct up during the week. The world's benchmarks are in super backwardation since the forward prices are higher than spot prices. OPEC+ group ignored west call on rising output to curtail increasing prices and not in a mood to support opening taps due to capacity constraints. Inflation fears looming across the market since higher oil prices may spur inflation to harmful levels that may dent oil demand going forward. Turning to weekly data, U.S drillers added 5 more rigs as per Baker Hughes data.
Good day and Happy week end to all.
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