By Srinivas Chowdary Sunkara // petrobazaar // 16th Oct, 2020.
Brent oil futures for Dec delivery slipped 16 cents or 0.37% to $43.16 on London based ICE futures Europe exchange and WTI oil Nov futures dropped 8 cents or 0.19% to $40.96 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices went up 2.5 Yuan or 0.92% to 272.9 Yuan/barrel while MCX crude oil current month contract futures prices closed down Rs.11 or 0.37% to Rs.2993 a barrel yesterday. Brent premium over WTI slightly narrowed down by $2.2 a barrel during the session.
The world crude oil price index curves moved down yesterday as the trader worried over dimmed demand outlook buoyed by surge in infections numbers caused new restrictions. Earlier losses were pared by bullish EIA numbers during yesterday's trading. Today, Asian markets continued to on down side due to strong dollar and supplier's resumption of production talk. Turning to EIA report, Last week, U.S crude stocks were drawn by 3.8Mbpd while gasoline and distillates inventories sank by 1.6 and 7.2 Mbpd respectively. Crude draws were largely due to delta shutdown and slid in imports while dip in refinery run rate pushed down product stocks last week. Both the benchmarks are heading towards weekly gains. Baker Hughes rig numbers are due later today that may cause some volatility.
Good day to all and happy week end.
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