By Srinivas Chowdary Sunkara // petrobazaar // 11th January, 2022.
Brent oil futures for March delivery traded 88 cents or 1.08 pct down to $80.87 a barrel on London based ICE futures Europe exchange. WTI oil Feb futures prices settled 67 cents or 0.85% down to $78.23 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices slid 8.1 Yuan to 509.3 Yuan/bbl while MCX front month futures prices settled Rs.50 or 0.86 pct down at Rs.5796 a barrel yesterday. Brent premium over WTI narrowed down to $2.64 a barrel during the session.
The world crude oil price index curves turned down on Monday after rise during early hours of trading. Both the benchmark futures started tumbling following the lower financial market amid rising concern over rapid increase in Omicron virus cases across the globe. Demand fears outweighed Kazakhstan supply concerns and returning Libya oil, Pulled back early hours of gains during yesterday's trading. On the technical side, Oil bulls are confident of receding new wave impact on oil markets since Hedge funds, Other money managers and portfolio managers increased betting in the six most important petroleum-related futures and options contracts in the week to Jan 4th that kept oil prices on the higher side last week. Brent's six-month calendar spread has tightened into a backwardation of around $3.80 per bbl, Means current value is higher than it will be in later months that encourages traders to release oil from from storage to sell it promptly. Today, Asian markets opened in positive mood, Clawing back some of the losses in the previous session. Monthly reports and API numbers are due later today that may prompt some volatility during the session.
Good day to all.
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