By Srinivas Chowdary Sunkara // petrobazaar // 22nd Sep 2020.
Brent oil futures prices for Nov settlement dropped $1.71 or 3.96% to settle at $41.44 a barrel on London based ICE futures Europe exchange and U.S crude, WTI oil futures to be delivered in Oct slumped $1.8 or 4.38% to close at $39.31 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices rose by 2 Yuan or 0.73% at 276.7 Yuan/barrel while MCX crude oil current month contract futures prices settled down Rs.96 to Rs.2897 a barrel yesterday. Brent traded at a premium of $2.13 over WTI during the session.
Yesterday, The world crude oil price index curves demonstrated downside momentum spurred by negative sentiment buoyed by increasing coronavirus cases in major markets that could lead to fresh lockdown which in turn may hurt fuel demand. Today morning, Asian markets opened high, paring sharp overnight losses as the latest tropical storm in the Gulf of Mexico lost strength. Turning to CFTC weekly data, Petroleum positions turned firmly bearish from moderately bullish in the middle of last month. Hedge funds and other money managers continued to sold in the six most important petroleum futures and options contracts in the week to Sep. 15th. Portfolio managers have become sceptical about the market rebalancing as OPEC+ shows signs of easing the cut pact. Traders are waiting for API numbers, due later today. Oil benchmark futures are trading near 1% high at the time of reporting. Good day to all.
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