By Srinivas Chowdary Sunkara // petrobazaar // 16th Sep, 2022.
Brent oil futures prices for Nov delivery slumped $3.26 or 3.46 pct to $90.84 a barrel on London based ICE futures Europe exchange while WTI oil Oct futures prices tumbled $3.38 or 3.82% to close at $85.1 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices rose 29.4Yuan to 675.9 Yuan/bbl where as MCX front month futures prices sank Rs.286 or 4.02% to settle at Rs.6823 a barrel yesterday. Brent traded at a premium of $5.74 a barrel during the session.
The world crude oil price index curves demonstrated downside momentum on bearish fundamentals across the market. Both benchmarks traded down after Major U.S railroads and unions secured a tentative deal to avert strike. Mounting signs of weak economic data across the world continued to spill over bearish signs. Strengthening dollar ahead of increase in interest rates by Fed also weighing on oil prices. Swelling inventories in U.S sagged down oil prices during the week. Cramer said that if oil falls to below $80, The next possible floor is at around $60 and with the Fed gearing up to raise interest rates in the next week in its aggressive campaign against inflation, It would not take much to push oil down even more. Today, Asian markets opened in green, Clawing back some of the previous sessions losses. Rig numbers are awaited. Both the benchmarks are trending towards weekly loss. Good day to all.
Disclaimer: Views and opinions expressed here are personal. This commentary is for information purposes only and not an offer or a solicitation to sell or buy any physical commodities or financial instruments. The views and analysis are based on reliable public information available at the time of writing. This report and its content cannot be copied, redistributed or reproduced in part or whole without the prior written permission of petrobazaar.com
