By Srinivas Chowdary Sunkara // petrobazaar // 20th May, 2022.
Brent oil futures prices for July delivery rose $2.93 or 2.69 pct to $112.04 a barrel on London based ICE futures Europe exchange while WTI oil June futures prices moved $2.62 or 2.29% up to settle at $112.21 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices went down 9.6 Yuan to 694.4 Yuan/bbl where as MCX crude oil front month futures prices traded Rs.25 or 0.29 pct lower to Rs.8490 a barrel yesterday. WTI traded at a premium of 17 cents to Brent during the session.
The world crude oil price index curves moved up after turning down in the previous two trading sessions. Both the benchmarks responded to all sorts of different headlines on hour to hour and the momentum is getting more exaggerated. Weak dollar and optimism over returning demand from China easing some lockdown measures, Supported oil complex. Looming possibility of EU phase wise ban on Russian oil also extended support to oil prices. Fundamentally speaking, Slowing down economic activity, Inflation fears amid central banks increasing interest rates and Recession signals continued to limit upside movement of oil prices. Refineries coming back from maintenance with increased runs need crude throughput also put upward pressure on crude prices. Today, Asian markets opened in bearish mood, clawing back some of yesterday's gains. Weekly rig numbers are due later today. Markets seems to be sensitive as any headline from any source will spur oil prices. Oil futures are moving towards weekly gains.
Good day to all.
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