By Srinivas Chowdary Sunkara // petrobazaar // 12th August, 2019.
Brent oil prices rose $1.15 to $58.53 and U.S crude futures went up $1.96 to $54.5 a barrel on Friday. Brent posted above 5% loss and WTI futures closed 2% lower during the week after a rise of around 2% on the week end. Shanghai crude oil main contract futures dropped 1.3 Yuan to 412.2 Yuan/barrel while MCX crude futures settled Rs.196 up at Rs.3892 during the last trading session.
The world oil benchmark index rebounded amid fragile demand reported by IEA. A report of inventory drawings in European countries and signs of OPEC determination to re-balance the market albeit lower demand growth by IEA, Supported oil prices in the previous session. Coming to monthly reports, IEA said that economic woes hold sway over geopolitics while reporting lower demand growth for 2019 and 2020. The agency also reported that the short term market balance has been tightened slightly by the reduction in supply from OPEC countries while non-OPEC supplies are expected to grow. Turning to weekly numbers, US drillers further reduced another six rigs for sixth week in a row, Indicating the signs of shifting the operator's focus from aggressive growth strategies to generating enough cash flow to sustain the business, Reduce the expenditure and debts in turn to ensure the higher dividends to investors.
Asian markets are opened with gap up today, Continuing the previous session's momentum. Analysts are in the opinion that the negative sentiments will continue to pile up as the worries over price collapse that could take place in near to medium term.
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