By Srinivas Chowdary Sunkara // petrobazaar // 21st July, 2020.
Brent oil futures for Sep delivery rose 14 cents to $43.28 on London based ICE futures Europe exchange and WTI oil futures to be delivered in August settled 22 cents up at $40.81 a barrel on NYMEX last night. In Shanghai, crude oil main contract futures prices dropped by 9.1 Yuan or -3.01% at 293.3 Yuan/barrel while MCX crude oil July month contract futures closed Rs.17 up at Rs.3070. The July month MCX crude contract futures expired yesterday. Brent traded at a premium of $2.47 over WTI during the yesterday's session.
The world crude oil benchmark indexes demonstrated upward momentum today on positive news about vaccine trials and the European Union agreement on a 750 billion euro fund to prop up their corona-virus-throttled economies that might lift the fuel demand. Further upside in prices is capped by the resurgence of virus numbers and reports of some countries posting record number of infections.
On the other hand, John kept from Reuters reported that Hedge funds position taking in crude and products remains desultory as uncertainty over the price direction amid corona pandemic course compounds the normal summer time trading slowdown. Hedge funds and other money managers purchased the equivalent of 24 Mb of futures and options in the six most important oil futures and options contracts in the week ending on July 14th. The purchases reversed sales of 21 Mb during the previous week, extended slight rise in petroleum positions evident over the last month, after a much stronger upward trend over the previous two months.
Turning to technical front, Today, Bulls are celebrating predominantly with ADX and RSI indicators are comfortably favoring the trend at the time of reporting for MCX for Crude August delivery. It seems that bullish trend may continue for some time. API numbers are awaited later today that may spur some volatility.
Good day to all.
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