By Srinivas Chowdary Sunkara // petrobazaar // 16th July 2020.
Brent oil futures for Sep delivery rose 89 cents or 2.07% to close at $43.79 on London based ICE futures Europe exchange and WTI August futures prices closed 91 cents up to $41.2 with an increase of 2.26 pct on NYMEX last night. In Shanghai, crude oil main contract futures prices rose 2.4 Yuan or 0.79% at 307.9 Yuan/barrel while MCX current month crude oil futures settled Rs.58 up at Rs.3091 a barrel yesterday. Brent traded at a premium of $2.59 over WTI during the session.
The world crude oil price indices demonstrated downward momentum today during the Asian hours. The Bench mark prices moved up yesterday after a sharp drop in U.S inventories as reported by EIA. Further gains were limited by the OPEC+ decision to ease supply curbs from August. Turning to weekly stats, EIA reported a draw of 7.4Mb in U.S crude stocks while gasoline and distillates were sank by 3.1Mb and 0.5Mb during the week ending July 10th. Production numbers unchanged at 11Mbpd while imports were slipped and exports were marginally increased. Refinery throughput seems to be down by 38Kbpd since the product import numbers were up. Refinery utilization rate was improved since the opening up of economies pushed fuel consumption resulted in increase in demand. Cushing stocks were up by 0.9 Mb.
On the supply side, OPEC+ JMCC meeting went well and the group avoided a taper tantrum after agreement of opening taps following the improvement of demand across the globe. The group assumed that the extra supplies will be consumed by the local markets while demand continue to be in recovery path. Markets seems to be in bearish mood today since many of the traders booked profits yesterday after OPEC+ meeting. Rig numbers are awaited tomorrow.
Good day to all.
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