By Srinivas Chowdary Sunkara // petrobazaar // 11th March, 2021.
Brent oil futures prices for May delivery rose 38 cents or .56% to $67.9 a barrel on London based ICE futures Europe exchange. WTI oil futures to be delivered in April edged up 43 cents or 0.67 pct to close at $64.44 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices went down 10.9Yuan to 417.3 Yuan/bbl while MCX crude oil current month futures traded Rs.23 lower to settle at Rs.4655 a barrel yesterday. Brent traded at a premium of $3.46 a barrel over WTI during the session.
The world crude oil price index curves turned up despite of build in U.S crude stocks. An upbeat forecast for robust global economic recovery radiated positive vibes across the market that pushed oil prices up. OPEC – plus compliance soars that became possible with KSA voluntary cuts, that started in last May, also supported oil prices. Turning to weekly reports, EIA reported that U.S crude stocks were built up by 13.798M while gasoline and distillates stocks were drawn by 11.869M and 5.504M respectively during the last week. Over the last two weeks, U.S gasoline stocks have plunged a cumulative 25.5 Mb, the largest drop in at least 30 years. On the supply side, Libya's state energy company said that it will increase oil production. Russia says that non-OPEC producers may increase output to take advantage of higher oil prices and Russia is likely to increase output. The world's third largest Asian consumer, India is threatened to reduce dependence on Middle east due to recent surge in oil prices, which may not be possible at least in the short term. Today, Asian markets opened in green, continuing yesterday's gains.
Good day to all.
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