By Srinivas Chowdary Sunkara // petrobazaar // 16th Dec, 2021.
Brent oil Feb futures prices rose 18 cents or 0.24 pct to $73.88 a barrel on London based ICE futures Europe exchange. WTI oil futures for Jan delivery edged up 14 cents or 0.2% to $70.87 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices went up 31 Yuan to 469 Yuan/bbl while MCX crude oil front month futures prices closed Rs.31 higher at Rs.5389 a barrel during yesterday's session. Brent premium over WTI widened to $3.01 a barrel during the session.
The world crude oil price index curves turned up yesterday after both the benchmark prices bounced back from previous sessions losses. Omicron concerns and over supply fears continued to press oil complex most of the day. Later on, Oil markets responded positively along with other riskier assets after Federal reserve statement of ending its pandemic-era bond purchases in March. On the weekly data side, EIA reported that U.S crude stocks were drawn by 4.6Mbpd while gasoline and distillates stocks declined by 0.7Mbpd and 2.9Mbpd respectively. U.S domestic production remained unchanged while exports were boosted up. In brief, Markets looked at implied oil demand since numbers are strong across all elements. Analysts are in the opinion that markets may pull back on receiving more information on travel curbs, Infection numbers and vaccine affect on Omicron. Today, Asian markets are opened in green, Adding more gains to yesterday's profits. Both benchmarks are likely to log in weekly losses. Rig numbers are awaited.
Good day to all.
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