By Srinivas Chowdary Sunkara // petrobazaar // 22nd August, 2019.
Brent Oct futures prices rose 27 cents to $60.30 and WTI futures for Sep delivery lost 45 cents to $55.68 a barrel last night. In Shanghai, crude oil main contract futures gained 1 Yuan to 426 Yuan/barrel while MCX crude futures closed down flat with an insignificant change of Rs.6 yesterday. Brent premium to WTI widened to $4.62 a barrel.
The world crude oil price index remain stuck in a row of weak fundamentals. A recent rally could not remove the fears of recession and sluggish demand outlook. Trade war fears are prevailed in the market while middle east tensions remained in focus. Stimulus measures to ward off slowing economic fears are still on the cards. Turning to weekly numbers, EIA reported a drawings of 2.7Mb in US crude inventories, a bigger than expected while gasoline and distillates stock were built up by 0.3Mb and 2.6Mb respectively, larger than expected. Oil index pared gains after the weekly report apparently indicated that the product demand was anaemic.
Today, Asian markets are trading in green zone and do not have any firm trend so far. Traders are waiting for comments from annual U.S central bank seminar scheduled during the week. I don't find any clue to support either side amid unchanged fundamentals for today.
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