By Srinivas Chowdary Sunkara // petrobazaar // 10th Feb, 2022.
Brent oil futures for April delivery rose 77 cents or 0.85 pct to close at $91.55 a barrel on London based ICE futures Europe exchange. WTI oil March futures traded 30 cents or .34 % up, To settle at $89.66 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices went down 13.3 Yuan to 548.8 Yuan/bbl while MCX crude oil front month futures prices closed Rs.20 or 0.3 pct lower at Rs.6680 a barrel yesterday. Brent premium over WTI widened to $1.89 a barrel during the session.
The world crude oil price index curves moved up yesterday on strong U.S inventory numbers after a downturn in previous session. Both the benchmark prices surged after EIA showed a big draw down in U.S crude stocks by 4.8 Mbpd. Gasoline and distillates stocks are dropped by 1.6Mbpd and 0.9Mbpd respectively during the last week. The EIA numbers are proxy for demand growth that outweighed the pressure from U.S – Iran nuclear talks. Depleting gasoline inventories showed a sign of demand coming from withdrawing travel restrictions and a dip in diesel stocks indicated the momentum in factories activities. Slippage in import numbers along with increase in exports also a reason behind big drawdown. U.S drillers ramped up domestic production while U.S refinery utilisation went up along with boost in crude throughput into refinery. The oil complex has also been supported with a supply threat from UAE.
Today, Asian markets opened in green, Adding to previous session gains. On the contrary, Markets are carefully watching the U.S- Iran nuclear talks and possibility of Tehran barrels return to markets. U.S oil hitting market soon also keep weigh on oil prices.
Good day to all.
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