By Srinivas Chowdary Sunkara // petrobazaar // 13th March 2020.
Brent oil futures for May delivery sank further by $2.57 to settle at $33.22 on London based ICE Futures Europe Exchange while WTI oil April futures slipped $1.48 to close at $31.5 a barrel on NYMEX. In Shanghai, Crude oil main contract futures dropped by 23.6 Yuan or 8.29% at 261.1 Yuan/barrel where as MCX crude oil current month futures slumped Rs.155 at Rs.2328 a barrel yesterday. Brent premium over WTI narrowed down to $1.72 during the session.
The world crude oil benchmark indexes moved down yesterday after an unexpected announcement by Trump, restricting travels from Europe to contain spreading corona virus across the country. The WHO described the outbreak as a pandemic. The slump is also being compounded by the worries over the threat of supplying cheap crude from Saudi. The world equity markets dived over the prevailing corona virus worries across the world. Meanwhile oil operators have started negotiations with the oil field services providers to take the price advantage and the energy stocks are trading at lowest levels not seen before. Baker Hughes numbers awaited later today and expect to see lower number of rigs. Good day to all.
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