crude prices update by Srinivas Chowdary Sunkara as on 17-05-2023
Brent oil futures for July delivery rose 8 cents to $74.99 a barrel while U.S crude June futures prices inched up 5 cents to $70.91 a barrel on Wednesday during morning hours trade. Both the benchmark prices dropped yesterday on prevailing bearish sentiment buoyed up by piling up U.S stocks report. API estimated that U.S crude stocks built up by 3.60Mbpd while gasoline and distillates stocks are drawn by 2.46Mbpd and 886Kbpd respectively during the last week. U.S government agency will confirm the numbers later today. Oil complex is drawing support from low fuel stocks despite of signs of gloomy economic outlook. Crack spreads for gasoline particularly are very strong ahead of driving season while weaker diesel cracks are anticipating slowing economy. It is estimated that funds will start raising long positions after recovery of economy and consumption.
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