Brent and WTI futures trends by Srinivas Chowdary Sunkara as on 21st July, 2023.
Brent oil Aug futures prices touched $80 a barrel and going up while WTI futures for July delivery rose 28 cents to $75.63 a barrel on Friday morning during Asian hours. Both the benchmarks closed up below 0.5 pct yesterday. Brent premium over WTI narrowed down to $4.01 during the session. Crude futures are set to close mix this week.
Supply side fundamental continue to support oil prices while traders assessement of China's steps towards boosting economy is strengthening the bullish sentiment. Data from financial markets also fanned positive vibes after looking at moderate job growth and lower than expected inflation that might convince Federal reserve not to hike int rate in the month of July. It is evident that traders are very confident of easing inventories in future, Trouncing analysts expectations of tightening markets. Rig numbers are awaited later today. The most active WTI July futures set to expire today. I expect that longs are building petroleum futures and options positions during the week the will keep market in green zone.
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