By Srinivas Chowdary Sunkara // petrobazaar // 10th Oct, 2019.
Brent oil prices settled 8 cents up at $58.32 and WTI futures prices closed 4 cents down at $52.50 a barrel last night. In Shanghai, crude oil main contract futures traded 12.1 Yuan up at 449.3 Yuan/barrel while MCX crude futures for Oct settlement went up Rs.20 to Rs.3765 after touching of low of Rs.3727 on selling pressure during the day.
The world crude benchmarks traded mix yesterday. Turkey's military operations in northeast Syria against Kurdish fighters pushed oil prices up while Trump's statement not to back the assault pared the gains. In the early trade, Like any other riskier assets, Crude complex got boost from the news that the China is open to accept partial trade deal. Prices dropped post settlement after China officials mitigated the hopes for a deal to end the long running trade war. Oil prices were pressed by a report of 2.9Mb of build in US crude inventories last week, More than expected build of 1.4Mb. The numbers raised concerns as the demand from refineries has seen a larger decline than anticipated during the season. US crude production rose to record of 12.6Mbpd during the last week as per the EIA report.
Today, Asian markets opened down but the it doesn't demonstrate any firm trend so far. Analysts are in the opinion that the oil prices are threatened to slid further on demand worries amid larger concerns of recession fears across the globe. I agree with Alahdal's opinion that lower oil price is the best way for oil to have a bigger market share in
the global energy mix. Good day.
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