By Srinivas Chowdary Sunkara // petrobazaar // 18th March, 2021.
Brent oil prices for May delivery fell 39 cents or 0.57% to settle at $68 on London based ICE futures Europe exchange. In U.S, WTI oil futures prices to be delivered in April slipped 20 cents or 0.31 pct to close at $64.6 a barrel last night. In Shanghai, Crude oil main contract futures prices rose 4.9 Yuan to 420.9 Yuan/bbl while MCX crude oil current month futures prices settled Rs.43 lower at Rs.4675 yesterday. Brent premium over WTI narrowed down to $3.4 during the session.
The world crude oil price index curves continued to fall for fourth consecutive day on demand concerns in Europe, Build in U.S inventories and worries over possible side affects of corona virus vaccine. Turning to weekly data, EIA reported that U.S crude, Gasoline and Distillates stocks were piled up by 2.396Mb, 0.472 Mb and 0.255 Mb respectively last week. Crude production numbers remained unchanged at 10.9Mbpd, Imports were slipped while exports were marginally dipped as per the report. Crude input into refinery widened up where as operable capacity remained unchanged while percentage utilisation marginally changed last week. On the other hand, IEA monthly report seems to be bearish, Pumping energy transition. IEA report shows Covid-19 caused a historic drop in global oil demand, but not necessarily a lasting one. As per the report, Global oil supply & demand are living in two separate world, With demand set to rise much faster than supply. This can't go on indefinitely and hope that government policies will resolve go forward. Today, Asian markets are trading in red, Extending previous session's losses.
Good day to all.
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