By Srinivas Chowdary Sunkara // petrobazaar // 14th Oct 2020.
Brent oil futures prices for Nov delivery rose 73 cents or 1.75% to $42.45 a barrel on London based ICE futures Europe exchange and U.S crude oil grade, WTI futures to be delivered in Nov settled up 77 cents or 1.95% to close at $40.2 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices dropped by 3.6 Yuan or -1.31% to close at 271.9 Yuan/barrel while MCX crude oil current month futures prices went up Rs.67 or 2.32% to Rs.2955 a barrel yesterday. Brent traded at a premium of $2.25 over WTI during the session.
Yesterday, The world crude oil price index curves demonstrated upward momentum as both the benchmark prices rebounded on robust Chinese economic data, But gains were capped by faltering oil demand talk across the globe. As per customs data, The world's top crude oil importer took in 11.8 Mbpd in Sep up 5.5% from August and up 17.5% from a year earlier. On supply side, KSA and Russia are in talks, not to taper production from Jan, 2021. Turning to monthly reports, OPEC said that oil demand in 2021 will rise by 6.54 Mbpd to 96.84 Mbpd, 80kbpd less than expected last month. In its monthly report, IEA painted a fragile recovery and warns OPEC, very little room for extra oil. Coming to weekly reports, API estimates are delayed due to government holiday on Monday and the numbers are expected little later today. Oil futures are trading in red today at the time of reporting since the lingering worries, over the increase in covid cases amid gloomy demand outlook weighed on oil complex.
Good day to all.
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