By Srinivas Chowdary Sunkara // petrobazaar // 22nd Oct, 2019.
Brent oil prices dipped 46 cents to $58.96 and WTI oil prices slipped 47 cents to $53.31 a barrel last night. In Shanghai, crude oil main contract futures prices rose by 1.2 Yuan or 0.27% to 446.1 Yuan/barrel while MCX crude oil futures for Oct delivery settled Rs.15 down at Rs.3810. Brent traded at a premium of $5.65 to WTI yesterday.
The world oil price index settled down around 1% yesterday on mounting fears over stumbling economy would pinch oil demand amid rising risk of prolonged trade negotiations. Losses were capped by an optimism surrounded by the signs of progress in trade talks. Turning to data, Reuters preliminary poll showed that the U.S crude stocks will pile up while product stocks are drawn for the week ending 18th Oct. API numbers are due later today. On the supply side, Russia said that the country could not adhere to its quota of supply reduction in Sep due to preparation for winter. European production was trimmed 4% in Sep from the previous month as per the data from Euroilstock.
Today morning, Oil markets opened steady during the morning hours and it does not indicate any firm trend so far. Analysts are in the opinion that the oil prices are in doldrums and traders are cautiously optimistic over early resolution to trade irritants which may fuel demand. Weekly numbers may spur some volatility during the week. Good day.
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