By Srinivas Chowdary Sunkara // petrobazaar // 11th Nov, 2020.
Brent oil futures prices for Dec delivery rose $1.21 or 2.85% to $43.61 a barrel on London based ICE futures Europe exchange and WTI oil futures prices to be delivered in Nov edged up $1.07 or 2.66% to settle at $41.36 a barrel last night. In Shanghai, Crude oil main contract futures prices soared by 13.2 Yuan or 5.43% to close at 256.4 Yuan/barrel while MCX crude oil current month futures prices rose Rs.54 or 1.8% to close at Rs.3055 a barrel yesterday. Brent futures traded at a premium of $2.25 over WTI during the session.
The world crude oil benchmark price index curves continued to move upward during the yesterday's session as the vaccine hopes outweighed the expected negative impact on fuel demand of new lockdowns. Technical analysts said that the second consecutive day of a big rally in differed time-spread, both the benchmarks, and far from outpacing the gains in flat prices, interpreted as producer's hedging. Producer's group comments on supply tightening going ahead, continued to support oil complex while rising Libyan production kept the prices in check.
Turning to weekly numbers, API reported that U.S crude , gasoline and distillates supplies declined by 5.1Mb, 3.3Mb and 5.6Mb respectively for the week ended Nov.6th. EIA numbers will be delayed to Thursday and consensus is on draws. EIA projects that US crude production fell by 0.45mbpd m/m to 10.79mbpd in Oct as per its short term energy outlook. Today, Asian markets opened in green and it doesn't demonstrate any firm trend so far. Good day to all.
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