By Srinivas Chowdary Sunkara // petrobazaar // 15th March, 2022.
Brent oil futures prices for May delivery fell $5.77 or 5.12 pct to settle at $106.9 a barrel on London based ICE futures Europe exchange. WTI oil April futures prices went down $6.32 or 5.78% to close at $103.01 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices slipped 0.5 Yuan to 683.5 Yuan/bbl while MCX crude oil front month futures prices settled Rs.538 or 6.45% down to Rs.7797 a barrel yesterday. Brent traded at a premium of $3.89 a barrel over WTI during the session.
The world crude oil price index curves turned steep down yesterday after both the benchmarks demonstrated bearish momentum upon positive developments from Russia-Ukraine fourth round of talks that may ease supply tightness. On the other hand, A renewed COVID out break in China is leading rise in shutdowns, Concerned market over demand outlook. Russia output increased, India considering to release emergency reserves and U.S needs to take a call on Iranian barrels while British prime minister urged KSA to consider to boost output are the other factors. On the technical side, Investors slashed bullish positions amid extreme volatility. Hedge funds and money managers sold in six most important petroleum related futures and options contracts in the week to March 8th. The record backwardation in futures prices accelerated spot prices that pushed market into extreme stress to reverse course. Investors also fear that soaring oil prices have been part of a broader increase in the price of raw materials, manufacturing items that may rise the probability of a recession within the next 12 months. Today, Asian markets are trading in bearish mood.
Good day to all.
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