By Srinivas Chowdary Sunkara // petrobazaar // 19th Sep, 2019.
Brent oil prices slipped 95 cents to $63.6 and WTI futures prices settled $1.23 down at $58.11 a barrel last night. In Shanghai, crude oil main contract fell by 13.5 Yuan or 2.79% to 479.6 Yuan/barrel while MCX crude futures dropped by Rs.95 to Rs.4150 yesterday. Brent traded at a premium of $5.49 to WTI.
The world crude oil price index retreated by another 2pct, extending previous session's losses after Saudi assured the quick restoration of lost production following the last weekend's attacks on its facilities. The question is how come market treat these serious attacks, Just as a 5Mb of output reduction which could be covered by the inventories in the storage without having oil revenue loss. If so, Why market reacted so surprisingly with shock to send oil prices sky rocketed in a single session?.
Turning to weekly numbers, EIA reported that the U.S crude stocks and product inventories are built up during the week ending Sep 13th while the products were drawn at major delivery hubs. US crude production remained unchanged at 12.4Mbpd. Strong dollar and easing of interest rates by US federal bank kept US Oil under pressure. Geo-political tensions continue to exist in the ME region. Asian markets opened in green today and it does not demonstrate any firm trend so far. Oil index may go for correction in the short term. Good day.
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