By Srinivas Chowdary Sunkara // petrobazaar // 13th Dec 2019.
Brent oil prices for February settlement rose 48 cents to $64.2 and WTI oil futures prices to be settled in January gained 42 cents to $59.18 barrel last night. In Shanghai, Crude oil main contract futures fell by 0.3 Yuan or 0.006% at 466.4 Yuan/barrel where as MCX crude futures inched up Rs.44 to Rs.4200 yesterday. Brent futures traded at a premium of $5.02 to WTI futures during the session.
The global bench mark crude futures indices gained about 1% yesterday after Trump tweet on trade deal boosted the futures markets. The tweet indicated that the U.S and China are very close to a big deal which propped up the fresh hopes amid the delay clouded the demand outlook. Oil prices have firmed after the producer's club deepened to rein in supplies during the first quarter of 2020 followed by OPEC expectation of small oil market deficit in the next year. On the contrary, IEA foresee a sharp rise in global inventories despite of OPEC's deepening cuts. Oil prices were also supported by unchanged interest rates by U.S federal reserve and the European Central Bank keeping ultra easy monetary policy unchanged.
Analysts are in the opinion that the it is difficult to draw a conclusion based on tweets but the market is desperately waiting to see the deal to happen to head into a new leg in the current rally. Today morning, Asian markets opened in green continuing yesterday's gains but it does not demonstrate any firm trend so far. Good day to all.
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