By Srinivas Chowdary Sunkara // petrobazaar // 14th May, 2021.
Brent oil futures prices for July delivery dropped $2.27 or 3.27 pct to $67.05 a barrel on London based ICE futures Europe exchange. In U.S, WTI crude oil futures prices sank $2.26 or 3.42% to settle at $63.82 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices came down 4 Yuan to 424.9 Yuan/bbl while MCX crude oil price current month futures prices closed Rs.204 lower at Rs.4680 a barrel yesterday. Brent traded at a premium of $3.23 a barrel over WTI during the session.
The world crude oil price index curves have fallen steeply yesterday on growing concerns over rising infection rates in world's third largest oil consumer, India. U.S resumed supply through Colonial pipeline also dented further gains. Much stronger than expected U.S consumer price data stoked inflation worries that would force Federal Reserve to raise interest rate, Which in turn boost U.S dollar. Strong dollar obviously weigh on oil prices as it makes oil costly. Insignificant changes in U.S weekly data could not buoyed market sentiment. Traders are looking at Middle east geo-politics. Some of the analysts and optimistic over tightening markets due to physical crude markets come back and Nigerian loading problems. Both the benchmarks are moving towards to weekly loss.
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