By Srinivas Chowdary Sunkara // petrobazaar // 13th Sep, 2019.
Brent futures for Nov settlement dropped by 43 cents to $60.38 while U.S crude for Oct delivery slipped by 66 cents to $55.09 a barrel last night. In Shanghai, Crude oil main contract futures dived by 13.9 Yuan or 3.09% where as MCX crude futures prices shrunk by Rs.108/- at Rs.3899 yesterday. Brent futures traded at a premium of $5.29 to WTI during yesterday's session.
The global oil price index came under pressure amid lot of moving parts continued to feed the bearish sentiment in the market. ECB cutting its deposit rate to new lows and US officials denying the interim agreeement with China kept the oil prices under check. Reuters poll prediction of worsening the US-China trade relations shrugged off cartel's commitment to trim output. Turning to weekly data, EIA reported that the US crude oil and gasoline inventories were drawn by 6.9 and 0.7 Mbpd respectively while distillates stocks were built up by 2.7Mbpd for the week ending Sep 6th. US production numbers were unchnaged at 12.4Mbpd. Coming to monthly numbers, IEA has not changed the global demand forecasts for 2019 and 2020. Baker Hughes rig numbers are awaited later today.
Asian markets are opened in red today morning and oil indexes do not have any firm trend so far. Both the benchmark prices are set to close with weekly loss. Traders are backpedalling and cautiously waiting for further clues. Have a good day.
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