By Srinivas Chowdary Sunkara // petrobazaar // 10th Nov 2020.
Brent oil futures prices for December delivery spiked $2.95 or 7.48% to settle at $42.4 a barrel on London based ICE futures Europe exchange. WTI oil futures to be delivered in Nov climbed $3.15 or 8.48% to close at $40.29 a barrel on NYMEX. In Shanghai, Crude oil main contract futures prices rose by 2.1 Yuan or 0.86% at 245.5 Yuan/barrel while MCX crude oil current month futures prices advanced Rs.237 or 8.57% to Rs.3003 a barrel yesterday. Brent traded at a premium of $2.11 over WTI during the session.
The world crude oil price index curves demonstrated upward momentum while both the benchmark future contract prices moved rose more than 4% as the oil complex joined the bullish euphoria of optimistic vaccine news and U.S presidential elections headlines. It was seen as a smack in the face of those who have written off the oil industry by predicting global oil demand has already peaked and oil prices will stay low in the long term. On the supply side, OPEC+ group signaled tighter supplies as the OPEC spearhead said that deal could be adjusted to balance the market subject to consensus. Analysts are wary of U.S president-elect Joe Biden relaxing measures on Venezuela that would be hard to balance the market near future. Turning to weekly data, API data is due later today. Today, Asian markets opened in red and it doesn't demonstrate any firm trend so far. I hope crude futures prices may move side ways today. Good day to all.
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