By Srinivas Chowdary Sunkara // Petro bazaar // 22nd Sep, 2022.
Brent oil Nov futures prices fell 79 cents or 0.87 pct to $89.83 a barrel on London based ICE futures Europe exchange while WTI oil futures for Nov delivery dipped $1 or 1.19% to close at $82.94 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices rose 17.9 Yuan to 660 Yuan/bbl where as MCX crude oil front month futures prices traded Rs.42 down to Rs.6720 a barrel yesterday. WTI discount to Brent widened to $6.89 during the session.
The world crude oil benchmark price curves demonstrated downside momentum amid bearish mood after Fed announcement of hike in interest rates by 75 basis points for the third time to a 3 – 3.25% range signaling further ups. The benchmarks traded up in early trading on Russia's comments on nuclear war. Fed Increase in interest rate to tame inflation, Weighed on equity markets that spilled over oil complex. Strong dollar against its peers also compounded prevailing bearish mood in oil market. Turning to weekly data, EIA reported that U.S crude stocks were built up by 1.1Mbpd while gasoline and distillates were piled up by 1.6Mbpd and 1.2Mbpd respectively last week. Imports and exports were mounted while crude throughput into refineries were marginally increased. Asian markets are trading up at the time of reporting today.
Good day to all.
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