:: Market News --- ID :: 17747
crude today // 16-09-2020
shorts taking profit or ?

By Srinivas Chowdary Sunkara // petrobazaar // 16th Sep, 2020.

Brent oil futures prices for Oct delivery rose 92 cents or 2.32% to close at $40.53 on London based ICE futures Europe exchange and WTI oil futures to be delivered in Oct jumped $1.02 or 2.74% to settle at $38.28 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures dropped 1.3 Yuan/bbl to 260.7 Yuan/bbl while MCX crude oil Sep futures settled Rs.82 up to Rs.2830 a barrel yesterday. Brent traded at a premium of $2.25 over WTI during the session.

The world crude oil price indexes moved up on U.S hurricane supply disruptions while persistent demand concerns buoyed by increase in virus numbers looming around the market. Turning to monthly reports, OPEC predicted that world oil demand will tumble by 9.46 Mb against the previous month prediction of 9.06 Mbd. IEA also joined with producer's group to voice over weak demand outlook by 200,000 bpd to 91.7 Mbpd citing the reason of  slowing economic recovery. OPEC+ JMMC meet is scheduled on Thursday and is not expected to make any recommendations for deeper output cuts. The world's top commodity trading giant, Trafigura sees crude inventories are building. On the contrary, Analysts are in the opinion that bad news priced in with recent dump and global stocks will be drawn with gradual demand recovery. China will be buying for Jan arrival soon. Turning to weekly data, API reported that U.S crude supplies dropped by 9.5 MB while gasoline stock piled up by 3.8 Mb and distillates fell by 1.1 Mb. EIA will confirm the numbers later today. 

Good day to all.

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