By Srinivas Chowdary Sunkara // petrobazaar // 8th Dec, 2021.
Brent oil futures for Feb settlement rose $2.36 or 3.23 pct to $75.44 a barrel on London based ICE Futures Europe exchange. WTI oil Jan futures prices climbed $2.56 or 3.68% to settle at $72.05 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices rose 12.6 Yuan/bbl to 463.8 Yuan/bbl while MCX crude oil front month futures prices settled Rs.253 higher at Rs.5453 yesterday. Brent premium over WTI narrowed down to $3.39 a barrel during yesterday's session.
The world crude oil price index curves bounced back yesterday after a steep fall last week following the huge sell-off prompted by demand concerns over new Omicron virus. KSA revising up OSP for Jan month and OPEC+ decision to continue to open taps for another 400000 bpd in Jan, Sent positive signals to market. We are seeing markets are coming back to bullish mood after a report indicated mild symptoms of Omicron variant that may not affect world travel. Analysts felt that markets started to take this new variant in its stride. Turning to weekly data, API data showed that U.S crude supplies fell by 3.1Mb last week while gasoline and distillates stocks were built up by 3.7Mbpd and 1.2Mbpd respectively during the last week. EIA will confirm numbers later today. Consensus is on crude draws and product build as per survey. Today, Asian markets opened in red and EIA numbers may spur some volatility.
Good day to all.
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