Brent and WTI price updates by Srinivas Chowdary Sunkara as on 13th July, 2023.
Brent oil futures for Sep delivery rose 40 cents to $80.51 a barrel while WTI oil August futures are trading 32 cents up to $76.07 a barrel on Thursday morning during Asian hours. Both the benchmarks closed up around 1 pct yesterday amid optimism over production cuts talks in the market. Brent premium narrowed down to $4.36 a barrel during the session.
Turning to data, U.S CPI showed modest rise in consumer prices that signed another round of interest hike by Federal reserve. Weekly data showed much bigger than build of around 6Mb in U.S crude stocks last week. Gasoline stocks largely unchanged, Trouncing analysts expectation of draws during driving season.
On the technicals side, Traders seems to be largely convinced on tightening spigots by both KSA and Russia. Implementation of cuts in the coming months will take back accumulated inventories in many countries. Funds started buying to cover existing short positions that is building longs, Helped oil prices to lift.
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