By Srinivas Chowdary Sunkara // petrobazaar // 13th August, 2019.
Brent oil prices for October delivery inched up 4 cents to $58.57 and WTI Sep futures prices edged up 43 cents to $54.93 last night. Shanghai crude oil main contract futures prices rose by 8.2 Yuan or 2% to 417.9 Yuan/barrel while MCX crude futures closed Rs.14 up at Rs.3906 yesterday. Brent premium to WTI further narrowed to $3.64.
The world oil index little changed yesterday on expectations that major oil producers would continue to curtail output to support oil prices amid the forecasts of sluggish demand growth due to trade war between two major world economies. Another OPEC member, Kuwait joined hands with Riyadh to increase the cuts more than required to support prices. Kuwait expect that oil demand will pick up in 2H19. Tensions prevailed in Persian gulf after replacing the unarmed British guards on ships travelling through Straight of Hormuz waters near to Iran coast. Softening greenback also keep supporting oil prices. As per US commodity trading commission, Hedge funds raised their net long positions in U.S crude futures and options for the week ending Aug 6th. API weekly numbers and OPEC monthly oil report are awaited later today which may spur some volatility. Asian markets are opened with gap down today and do not have any firm trend so far.
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