By Srinivas Chowdary Sunkara // petrobazaar // 21st Sep, 2021.
Brent oil futures prices for Nov delivery dropped $1.42 or 1.88 pct to $73.92 a barrel on London based ICE futures Europe exchange. WTI oil Oct futures prices went down $1.68 or 2.33 pct to close at $70.29 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices remained unchanged at 474.6 Yuan/bbl while MCX crude oil front month futures prices traded Rs.88 lower at Rs.5203 a barrel yesterday. Brent premium over WTI widened to $3.63 a barrel during the session.
The world crude oil price index curves moved down as wider risk-off sentiment weighed on oil complex. Debt trouble at China's property group Evergrande spooked equity markets in turn investors grew more risk averse, chose dollar as safe haven that spilled over oil markets. Delay in U.S Gulf output lent some support to oil although oil specific factors less of a driver now. On the technical side, Hedge funds and other money managers purchased the equivalent of 41 Mb in the six most important petroleum futures and options in the week ending Sep 14th. Portfolio managers started rebuild bullish positioning. As per data, Bullishness remains high but not exceptional. Bearishness towards oil has evaporated almost entirely, with the total number of short positions across the six contracts at the lowest level since Dec 2019, as the Hurricane related output losses eliminated any risk of a coronavirus-driven stock build as per Mr.Kemp. Today, Asian markets opened in greed, clawing back some of the previous session losses. API numbers are due later today followed by EIA confirmations.
Good day to all.
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