By Srinivas Chowdary Sunkara // petrobazaar // 12th July, 2019.
Brent oil prices slid by 49 cents to $66.52 and WTI prices edged 23 cents down at $60.2 a barrel last night. Shanghai crude oil main contract closed 20 Yuan or 4.53% high at 461.6 Yuan/barrel while MCX crude futures closed Rs.16 down at Rs.4132 yesterday.
Output cuts in Gulf of Mexico ahead of the Atlantic hurricane threat and Middle east tensions continued to support oil prices while dim demand outlook in 2020 reported by OPEC monthly oil report capped the gains.
Coming to monthly report, OPEC forecasts that the global oil demand will rise by 1.4 Mbd next year, unchanged from 2019 forecast growth. U.S tight oil supplies are predicted to allow more Permian crude to flow into US gulf coast export hub through new pipeline capacity. OPEC is in the opinion that the oil market may require longer and deeper cuts than those envisaged under its recently renewed pact. Saudi is consistent with the strong commitment to drain down inventories by curbing its production at 9.65Mbpd in May and June. Asian markets are opened up today. Gulf of Mexico storm and Persian gulf tensions are keeping the prices supportive at present.
Good day and Happy week end.
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