By Srinivas Chowdary Sunkara // petrobazaar // 17th Sep, 2020.
Brent oil futures for Oct delivery rose $1.69 or 4.17% to $42.22 a barrel on London based ICE futures Europe exchange and WTI oil futures to be delivered in Oct jumped $1.88 or 4.91% to close at $40.16 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures advanced 9.9 Yuan/bbl to 270.6 Yuan/bbl while MCX current month crude oil futures went up Rs.108 to settle at Rs.2936 a barrel yesterday. Brent premium traded at a premium of $2.06 over WTI during the session.
The World crude oil price indexes demonstrated upward momentum during yesterday's session as bullish weekly numbers added to the market sentiment buoyed by Hurricane sally in U.S.. Turning to weekly report, EIA reported that total stocks of crude and gasoline fell last week. Inventory draws were led by crude (-6.5 million barrels) and gasoline (-0.4 million barrels) while distillate fuel oil and jet fuel stocks were up by 2 million barrel and 0.2 million barrels respectively while there were small build in other products. U.S crude stocks are still 7.5% above from that of an year ago. Gasoline stocks are 0.8% above and distillate stocks are 31.2% above from one year ago stocks. Total volume of petroleum products supplies to the domestic market has been 12.8% below from last year. Despite of increased production, Crude oil stocks continued to fall, partly owing to the unusually slow rate of imports. Swollen diesel inventories in the U.S are threatening a recovery in oil prices. Distillates stockpiles have risen to highest level for the first time of year in decades, but demand is still at he slowest late July.
On the global supply side news, OPEC+ JMMC meeting is scheduled today and market does not expect any deep cuts to prop up prices except monitoring compliance rate. Asian markets opened in red and it does not demonstrate any firm trend so far.
Good day to all.
