By Srinivas Chowdary Sunkara // petrobazaar // 9th August, 2019.
Brent oil prices for October delivery rose $1.03 to $57.38 and WTI Sep futures ended the session up $1.45 to $52.54 a barrel last night. Shanghai crude oil main contract futures closed 10.2 Yuan lower at 413.5 Yuan/barrel while MCX crude futures settled Rs.55 higher at Rs.3696 yesterday. Brent premium to WTI further narrowed to $4.84.
The world oil index jumped more than 2% yesterday after a tumble of more than 5% in the previous session on a surprise inventory build up. The price rebound across the oil spectrum seems to be a normal technical correction from the short term oversold condition. Steady Yuan currency and further production cut talks lent some support to oil complex. Turning to data, Gescape reported an inventory draw at major U.S delivery hubs, Cushing and Oklahoma. On the supply side, Chinese crude imports surged in July while Saudi plans to trim its exports despite of strong demand from its customers to help to drain global inventories to rebalance the market. Asian markets opened in greed today. Rig numbers are awaited later today. Oil prices are heading towards biggest weekly drop after January. Analysts are in the opinion that times like this is where people start to panic and current bearish trend doesn't seems to be short lived.
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