By Srinivas Chowdary Sunkara // petrobazaar // 18th Aug, 2022.
Brent oil Oct futures prices rose $1.31 or 1.42 pct to $93.65 a barrel on London based ICE futures Europe exchange while WTI oil Sep futures prices edged up $1.58 or 1.83pct to settle at $88.11 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices inched up 1.7 Yuan to 663.4 Yuan/bbl where as MCX crude oil front month futures traded Rs.69 or 0.99% up to Rs.7005 a barrel yesterday. WTI traded at a steep discount to Brent, Making purchases of U.S crude more attractive to foreign buyers.
The world crude oil price index curves turned up as bullish weekly numbers outweighed over supply news and recession fears yesterday. EIA reported that U.S crude stocks were drawn by 7.1 Mbpd while gasoline stock fell by 4.6 Mbpd and distillates stocks were up by 0.8Mbpd during the last week. Domestic production numbers were down, Imports were significantly reduced while exports were ramped up that might have caused a dip in crude stocks. Fall in gasoline stocks signaled rebound in demand that supported oil prices. On the supply side, Russia gradually increasing production to cater to increasing demand from Asian markets. Inflation numbers and recession fears continued to weigh on oil complex. OPEC monthly report says that India's demand for oil product is projected to rise from 4.77 Mbpd in 2022, Supported by the healthy economic growth of 7.1 pct. India is the world's third-largest oil importing and consuming nation behind US and China. Today, Asian markets are trading mix at the time of reporting.
Good day to all.
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