By Srinivas Chowdary Sunkara // petrobazaar // 10th Sep, 2020.
Brent oil futures for Oct delivery rose $1.01 or 2.54% to $40.79 a barrel on London based ICE futures Europe exchange and U.S crude oil futures, WTI prices to be delivered in Oct went up $1.29 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices slumped 4.6 Yuan/bbl or 1.7% to 264.5 Yuan/bbl while MCX crude oil Sep futures settled Rs.93 up at Rs.2798 a barrel yesterday. Brent premium over WTI narrowed down to $2.74 a barrel during the session.
The world crude oil price indexes moved up yesterday, clawing back some of the previous session's losses due to softening short term outlook. Concern over stalling demand from Asian countries amid increase in virus cases continued lingering around the market that capped the upside momentum. Turning to weekly data, API reported that U.S crude supplies rose by 3Mb against analyst's expectation of 1.4Mb drawings. Gasoline stocks are expected to be dropped by 6.9 Mb where as distillates inventories rose by 2.3 Mb. EIA will confirm the numbers later today. Today morning, Asian markets opened in red following the bearish weekly report that signs further bearish momentum. On the supply front, OPEC+ producers increased supplies in August that weighed on oil complex, Analysts expect strong statement from producer's council in next week meeting. I strongly feel that bears are taking control over momentum.
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