By Srinivas Chowdary Sunkara // petrobazaar // 17th Sep, 2019.
Brent oil prices for Nov delivery spiked $8.8 to $69.02 and WTI oil to be delivered in Oct advanced $8.05 to $62.9 a barrel last night. In Shanghai, crude oil main contract futures rose by 28.1 Yuan or 6.35% where as MCX crude futures surged Rs.605 to Rs.4520 yesterday. Brent traded at a premium of $6.12 to WTI.
The Global crude oil price Index spiked sharply as expected following the week end news multiple drone attacks on Saudi Aramco's oil facilities that took off more than 5 Mbpd of output. Both the benchmarks settled at around 14.5% gain, Biggest one day percentage gain during the last couple of years with an all time daily volume record. Analysts expect that the real impact will be determined after knowing how long Aramco facilities will be offline and whether the company's oil stocks are sufficient to offset the loss of production. On the other hand, Retaliatory attack fears are exist in the market. Turning to Fundamentals, I am thin on long term bullishness as the gloomy demand picture will not allow oil prices to rise with reference to latest Chinese industrial production numbers.
Asian markets are opened above 1% down today morning and the price trend does not demonstrate any firm trend so far. API numbers are awaited later today. Good day.
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
