By Srinivas Chowdary Sunkara // petrobazaar // 10th Jan, 2023.
Brent oil futures prices for March delivery rose $1.08 or 1.37 pct to $79.65 a barrel on London based ICE futures Europe exchange while WTI oil Feb futures prices went up 86 cents or 1.17 pct to close at $74.63 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices slipped 2.5 Yuan to 526.3 a barrel where as MCX crude oil front month futures prices settled Rs.54 or 0.88 % up at Rs.6203 a barrel during yesterday's session. Brent traded at a premium of $5.02 to WTI during the session.
The world crude oil price index curves demonstrated upside momentum after slid down around 8 pct during the last week. Opening up of China's economy in a final farewell to zero-COVID and hopes on interest rate increase lesser than expected by FED are the factors that buoyed up oil prices amid the concerns over another surge in infections followed by massive flow of Chinese travelers across the world. Recession fears are lingering across. The oil market structures is reflecting Contango structure as both the near term benchmarks are trading at a discount to next month that indicates the bearish momentum. Analysts predict that oil prices are trended to go up on the back of cheap $, S&P rally, Expected boost in demand from China travel but the front of the crude market is dragged up more than back bcz of Q1 stocks pile up as per Dr.Gary. Weekly reports and monthly reports are due later this week. Asian markets are trading in red at the time of reporting.
Good day to all.
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