By Srinivas Chowdary Sunkara // petrobazaar // 23rd June, 2022.
Brent oil futures for August delivery traded $2.91 or 2.54 pct down to $111.74 a barrel on London based ICE futures Europe exchange while U.S crude oil August futures prices tumbled $3.33 or 3.04% to $106.19 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices fall down 24.3 Yuan to 683.9 Yuan/bbl whereas MCX crude oil front month futures prices plunged Rs.164 or 1.92 pct to Rs.8392 a barrel yesterday. Brent premium over WTI widened to $5.55 a barrel during the session.
The world crude oil price index curves turned down on recession fears spilled over by Fed interest rates hikes. Tensions have abated after investors worried that fed rates could push U.S economy into recession that may dampen the petroleum demand. Putting some light on weekly data, API reported that U.S crude stocks rose by 5.6Mbpd during the last week. Gasoline inventories climbed by 1.2Mbpd while distillates fell by 1.7Mbpd. EIA will confirm numbers later today. The consensus is on crude stock draws and build in product stocks. The factor of Producer's club not meeting monthly output quotas that will add current deficit, Continued to prevailed in the market that supported oil prices. Today, Asian markets opened in red, Adding to previous session's losses. Weekly numbers may spur some volatility in the oil prices.
Good day to all.
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