By Srinivas Chowdary Sunkara // petrobazaar // 21st January, 2021
Brent oil futures for March settlement added 18 cents or 0.32% to $56.08 a barrel on London based ICE futures Europe exchange and WTI oil futures to be delivered in Feb edged up 26 cents or 0.49% to $53.24 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices went up 8.4 Yuan to 342.7 yuan/bbl while MCX crude oil current month futures prices closed up Rs.35 to settle at Rs.3919 a barrel yesterday. Brent premium narrowed down to $2.84 a barrel over WTI during yesterday's session.
The world crude oil price curve demonstrated little upward movement yesterday amid expectations of U.S president Joe Biden's administration will deliver massive stimulus spending that will lift fuel demand. Oil prices drew some support from Analysts expectation of draws in U.S crude inventories. On Wednesday, API reported that the U.S crude supplies rose by 2.6Mb while gasoline stocks were built by 1.1Mb where as distillates stock were up 816Kb during the last week. EIA report is due later today while consensus is on drawings. On supply side, Analysts are bullish on oil prices, will be backed by U.S re-joining Paris agreement and cancelling a permit for the Keystone XL crude pipeline. On the other hand, Markets are watching virus cases vs vaccine.
Good day to all.
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