By Srinivas Chowdary Sunkara // petrobazaar // 23rd June, 2020.
The Brent oil futures for August delivery rose 89 cents or 2.11 pct on London based ICE futures Europe exchange to settle at $43.08 and WTI oil August futures went up 71 cents or 1.79% to close at $40.46 on NYMEX last night. In Shanghai, Crude oil main contract futures prices rose by 0.8 Yuan or 0.27% to close at 297.3 Yuan/barrel while MCX crude oil July futures settled Rs.44 or 1.46% up at Rs.3067. Brent traded at a premium of $2.62 over WTI during the session.
Today, The world crude oil futures prices looked unsettled in the morning session after a top White House trade adviser Peter Navarro said the China trade “is over”. Later He clarified himself that his comments had nothing to do with trade deal followed by the president saying that the China trade deal is fully in tact, that pushed oil prices up. OPEC+ stragglers have submitted plans to comply in line with production cuts pact, Supported oil complex. U.S and Canadian oil and gas drillers cut their rig numbers to all time low as per the latest rig count while demand is expected to be steady since the world major cities are opened up post lockdown are the other factors that are strengthening oil price rally although prospectus for second wave of corona virus cases continue to weigh on oil prices. API predictions are awaited later today. Early estimates are build in crude inventories and drawings in product stocks in U.S. let us see. Meanwhile John Kemp said that hedge funds started to realise some profits and anticipate a pull back in crude prices. He also said that fund managers have been gradually adding bearish short positions in NYMEX WTI for four weeks running.
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