By Srinivas Chowdary Sunkara // petrobazaar // 8th Dec, 2022.
Brent oil futures prices for Feb delivery tumbled $2.18 or 2.75 pct to $77.17 a barrel on London based ICE futures Europe exchange while WTI oil Jan futures prices dropped $2.24 or 3.02% to close at $72.01 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices dropped 29.2 Yuan to 515 Yuan/bbl where as MCX crude oil front month futures prices fell Rs.79 or 1.29 pct to settle at Rs.6062 a barrel yesterday. Brent premium over WTI widened to $5.16 a barrel during the session.
The world crude oil price index curves demonstrated downside momentum on bearish sentiment across the market over the prevailing uncertainty sidelined traders followed by rout in financial markets. Both the benchmarks prices plunged to this year low levels after forfeiting the gains post Ukraine crisis. Turning to weekly reports, EIA reported drawings in U.S crude stocks more than expected by 5.2Mbpd where as gasoline and distillates stocks were piled up by 5.3Mbpd and 6.2 Mbpd respectively during the last week. Analysts are in the opinion that only OPEC can break existing bearish sentiment by taking back 1Q over supply and price are being devasted by contango that reduces the financial investment. Today, Asian markets are trading in green at the time of reporting. Rig numbers are awaited this week.
Good day to all.
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