By Srinivas Chowdary Sunkara // petrobazaar // 20th July, 2021.
Brent oil futures prices for Sep delivery plummeted $5.15 or 6.98 pct to $68.62 a barrel on London based ICE futures Europe exchange. In U.S, WTI August futures prices tumbled $5.59 or 7.76% to settle at $66.42 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices dropped 2.9 Yuan to 435.1Yuan//bbl while MCX crude oil front month futures prices dropped Rs.381 to close at Rs.4983 a barrel yesterday. Brent premium over WTI widened to $2.2 during the session.
The world crude oil price index curves demonstrated steep downward momentum yesterday. Major sell off in oil has little to do with the Sunday OPEC+ meet. Growing Covid return in Europe , U.S and Asia prompted general risk-off that weighed on oil complex. On the technical side, Faltering oil prices gave a chance to portfolio managers to take profits. Hedge managers and other money managers purchased equivalent of 24 Mb in the six most important petroleum futures and options contacts in the week to July 13. Portfolio mangers remain bullish on oil where as bullishness about the output restraint by OPEC+ and U.S shale producers and the resulting drawdown in stocks has been tempered by worries over resurgent virus cases and affect on demand. Today, Asian markets are trading steadily, Taking a breather from continued losses during last couple of sessions. API numbers are due later today. Good day to all.
Disclaimer: Views and opinions expressed here are personal. This commentary is for information purposes only and not an offer or a solicitation to sell or buy any physical commodities or financial instruments. The views and analysis are based on reliable public information available at the time of writing. This report and its content cannot be copied, redistributed or reproduced in part or whole without the prior written permission of petrobazaar.com
