By Srinivas Chowdary Sunkara // petrobazaar // 9th Dec 2019.
Brent oil futures prices rose $1 or 1.58% to $64.39 and U.S crude oil futures prices gained 77 cents or 1.32% to $59.2 a barrel on Friday. Brent futures clocked 3.2% weekly gains while WTI futures logged 7.5% up during the week. In Shanghai, Crude oil main contract futures prices closed at 458 Yuan/barrel after gaining 2.5 Yuan or 0.55% while MCX crude futures settled Rs.45 up at Rs.4206 a barrel on late week. Brent premium over WTI widened to $5.19 during the session.
The world crude oil price indices closed the week with big gains after OPEC+ announced deep cuts of another 500000 bpd adding to the existing supply of cuts of 1.2Mbpd throughout the first quarter of 2020. The spearhead of the group, KSA would continue a voluntary cut of 400,000 bpd till the time of improving compliance rate from other members. Analysts are in the opinion that the oil prices could not be moved by the OPEC+ outcome as expected last week. On the supply side, U.S continue to excel at record high output despite of trimming operational rigs. On a whole U.S drillers will continue to enjoy the high oil prices at optimum operational costs in 2020.
Today morning, Oil futures prices opened in green during Asian hours and it does not demonstrate any firm trend so far. One needs to look at the developments in first phase of trade talks while enjoying bulls fest. Good day to all.
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