By Srinivas Chowdary Sunkara // petrobazaar // 15th Dec, 2021.
Brent oil Feb futures prices settled 69 cents or 0.93 pct down to $73.7 a barrel on London based ICE futures Europe exchange. WTI oil futures to be delivered in Jan, Slipped 56 cents or 0.79 % to close at $70.73 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices went down 11.9 Yuan to 469 Yuan/bbl while MCX crude oil front month futures prices traded Rs.80 or 1.47 pct down to Rs.5358 a barrel yesterday. Brent premium over WTI narrowed down to $2.97 a barrel during the session.
The world crude oil price index curves continued to demonstrate down side momentum yesterday. Strong dollar , Omicron fears and bearish monthly reports weighed on oil complex. On the data side, IEA lowered demand forecast for this year and coming year by 100000 bpd each due to expected pinch in jet fuel demand amid new travel curbs. IEA also signaled mounting signs of Omicron virus cases across the major countries. On the other hand, OPEC report continued to maintain demand growth forecast for the first quarter of 2022 and reinforced supplying additional 400000 bpd on monthly basis going forward. API reported that U.S crude supplies are drawn by 815,000 barrels for the week ending Dec 10th. Gasoline and distillates stocks were expected to be piled up by 426Kb and 1Mbp respectively. Consensus is on dip in crude stocks and rise in product stocks. EIA will confirm numbers later today. On the technical side, Brent crude prompt spread falling into contango from more than $1 backwardation that signals near term over supply also weighed on oil prices. Asian markets are opened in bearish mood and trading in red zone. Weekly numbers may spur some volatility. Good day to all.
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