By Srinivas Chowdary Sunkara // petrobazaar // 12th Feb, 2021.
Brent oil futures prices for April delivery slipped 33 cents or 0.54% to settle at $61.14 a barrel on London based ICE futures Europe exchange. U.S crude oil futures, WTI to be delivered in March closed 44 cents or 0.75 pct down to $58.24 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices remained unchanged while MCX crude oil current month futures prices lowered Rs.37 or 0.86 pct to settle at Rs.4247 a barrel yesterday. Brent premium over WTI widened up $2.9 during the session.
The world crude oil price index curves turned down, curbing longest rally since January, 2019. Prices started rallying up last week on inventory draws, Vaccination roll out that will drive oil demand and KSA further rein in supplies on top of other member's supply cuts. Although, U.S weekly crude numbers supported the rally, Gasoline stock numbers curtailed gains while Vaccination news curbed further fall. Turning to monthly report, There was a quite a bit of noise on IEA report that showed a baseline changes in 2019 filtering down on 2020 and 2021 numbers. IEA sees a rapid stock draw is anticipated during the second half of the year. That sets the stage for OPEC+ to start unwinding cuts. On supply side, If OPEC + wants to continue its “cautious” approach, easing the cuts at March meeting might be avoided. Today, Asian markets opened in red, continuing yesterday's downward momentum. I Know its 'profit taking' time.
Good day to all.
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