By Srinivas Chowdary Sunkara // petrobazaar // 13th Oct, 2021.
Brent oil futures for Dec delivery slipped 23 cents or 0.27 pct to close at $83.42 a barrel on London based ICE futures Europe exchange. WTI oil futures to be delivered in Nov edged up 12 cents or 0.15% to settle at $80.64 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices inched down 1.8 Yuan to 528.2Yuan/bbl while MCX crude oil front month futures prices settled Rs.15 lower at Rs.6091 a barrel yesterday. Brent premium over WTI narrowed down to $2.78 a barrel during the session.
The world crude oil price index curves moved steadily yesterday. Both the benchmarks traded steadily after volatile trade on Tuesday, Pausing a rally that brought the oil prices to the multiyear' s high levels. Bearish factors like Authorities from Beijing to Delhi scrambling to fill the yawning power supply gap , IMF trimming its 2021 global growth forecast and markets fears over derailing economy over surging energy cost across the world halted the ongoing rally. On the technical side, Backwardation is every where since physicals stocks tight. Brent eventually following the explosive WTI structure. Climbing price structures continued to attract hedge funds, Pressed bearish portfolio managers last week. Turning to supplies side, OPEC+ alliance fell short of its production ceiling in Sep as member countries unable to ramp up supplies due to technical issues. API numbers are due later today followed by EIA conformations tomorrow. Asian markets are trading in bearish mood today. Good day to all.
Disclaimer: Views and opinions expressed here are personal. This commentary is for information purposes only and not an offer or a solicitation to sell or buy any physical commodities or financial instruments. The views and analysis are based on reliable public information available at the time of writing. This report and its content cannot be copied, redistributed or reproduced in part or whole without the prior written permission of petrobazaar.com