By Srinivas Chowdary Sunkara // petrobazaar // 13th Oct, 2022.
Brent oil futures prices for Dec delivery plunged $1.84 or 1.95 pct to $92.45 a barrel on London based ICE futures Europe exchange while WTI oil Nov futures prices tumbled $2.08 or 2.33 pct to close at $87.27 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices fell 10.5 Yuan/bbl where as MCX crude oil front month futures prices slumped Rs.188 or 2.55pct tp Rs.7187 a barrel yesterday. Brent traded at a premium of $5.18 a barrel over WTI during the session.
The world crude oil price index curves demonstrated downside momentum for the third consecutive session. Both the benchmarks clocked around 2 pct loss as the dollar continues to trade at multi years high against its peers that makes oil costly. Gloomy economic outlook across the globe fanned lackluster demand on recession fears due to expected increase in interest rates by central banks to rein in inflation. Both the OPEC and EIA slashed demand outlook. OPEC monthly report said that there will be a cut of 460000 bpd to 2.64Mbpd this year due to resurgence of covid cases and high inflation. It also reported that world economy entered into deep uncertainty and rising challenges. API estimated that U.S crude and gasoline stocks are piled up by 7.054Mbpd and 2.008Mbpd respectively while distillates stocks are down by 4.56Mbpd during the last week. EIA will confirm numbers later today. Consensus is on up. Today, Asian markets are trading up, clawing back some of previous session losses. Good day to all.
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