By Srinivas Chowdary Sunkara // petrobazaar // 21st Feb 2020.
Brent oil futures for April delivery rose 19 cents or 0.32% to close at $59.31 while WTI oil futures to be delivered in March expired yesterday gained 49 cents or 0.9% to settle at $53.78 and the more active second month WTI contract was up 45 cents or 0.8% at $53.94 a barrel last night. In Shanghai, Crude oil main contract futures settled 8.2 Yuan or 1.99% up at 419.6 Yuan/barrel whereas MCX current month crude futures settled Rs.54 up at Rs.3904 yesterday. Brent premium over WTI slightly narrowed down to $5.53 during the yesterday's session.
The world crude oil benchmark futures price indexes gained some momentum after the EIA weekly report trounced the analysts expectation of 2.5 Mb build in U.S crude stocks during the last week. The gains were negated by the lingering worries over the spread of corona virus outside China. Turning to weekly data, EIA reported that the U.S crude oil stocks were build by 400Kb while gasoline and distillates stocks were drawn by 2Mb and 0.6Mb during the last week. U.S domestic production numbers were remained at 13Mbpd with no change in the refining operable capacity. On the other hand, The virus news out side of China fanned worries around the market and analysts are in the opinion that the virus impact can not be dissipated quickly. China's move to cut its benchmark lending rate provided some boost. U.S sanctions on a trading unit of Russian oil giant Rosneft for its ties with PDVSA extended some support to oil complex.
Today morning, Asian markets opened with a gap down and i expect speculator group may book profits over the week end.
Good day to all and happy week end.
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