By Srinivas Chowdary Sunkara // petrobazaar // 14th Sep, 2022.
Brent oil futures prices for Nov delivery slipped 83 cents or 0.88 pct to settle at $93.17 a barrel on London based ICE futures Europe exchange while WTI oil futures for Oct delivery dipped 47 cents or 0.54% to close at $87.31 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices went up 22.4 Yuan to 649.3 Yuan/bbl where as MCX crude oil front month futures prices settled down Rs.24 or 0.34 pct to Rs.6944 a barrel yesterday. Brent premium over WTI narrowed down to $5.86 a barrel during the session.
The world crude oil price index curves turned down after moving up in early session. Both the benchmarks traded down on bearish signals from U.S consumer price index data. The data showed that U.S consumer prices unexpectedly went up in August, Fanned signals that U.S federal reserve will hike interest rates in the next week. Increase in interest rates will strengthen dollar which in turn will weigh on oil complex. Renewed curbs in China deteriorating oil demand also keep pressure on oil prices. Analysts are in the opinion that structural outlook remains tightened but cyclical demand headwinds signals bearish mood. There is a false calm in the market and no need to laid back about current oil price declining. We may see much more tightness that will spike oil prices going forward as per analysts. API predicted that U.S crude stocks rose by about 6 Mbpd products stocks are expected to rise. Consensus is on build. Today, Asian markets are trading in red zone at the time of reporting. EIA numbers are awaiting later today.
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