By Srinivas Chowdary Sunkara // petrobazaar // 7th Dec, 2022.
Brent oil futures for Feb delivery slid $3.33 or 4.03 pct to close at $79.35 a barrel on London based ICE futures Europe exchange while WTI oil Jan futures prices tumbled $2.68 or 3.48 pct to settle at $74.25 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices went down 14.4 Yuan to 544.2 Yuan/bbl where as MCX crude oil front month futures prices slumped Rs.261 or 4.08 pct to Rs.6141 a barrel yesterday. Brent premium over WTI narrowed down to $5.1 a barrel during the session.
The world crude oil price index curves headed towards free fall on multitude of uncertainties that pushed traders towards sideways. Both the benchmarks fell to lowest settlement levels during the year amid volatility across the market. On the supply side, On Sunday, OPEC+ decided not to further cut production. Lower liquidity and rout in equity also pressed oil markets. Economic worries from China and Europe continued to weigh on oil complex. Analysts says that oil markets are very likely to stay in volatile in the near term, driven by COVID headlines in China and central bank polities in the U.S and Europe. Turning to weekly reports, U.S crude oil stocks fell by 6.4 Mb last week while product stocks rose as per API. EIA will confirm numbers later today. Asian markets are trading mix at the time of reporting.
Good day to all.
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