By Srinivas Chowdary Sunkara // petrobazaar // 23rd August, 2021.
Brent oil futures for Sep delivery settled $1.27 down to $65.18 a barrel on London based ICE futures Europe exchange. WTI oil Sep futures prices closed $1.37 down to $62.32 a barrel on NYMEX on Friday. In Shanghai, Crude oil main contract futures prices slipped 0.6 Yuan to 405.3 Yuan/bbl while MCX crude oil front month futures prices closed Rs.68 lower at Rs.4638 a barrel on Friday. Brent futures traded at a premium of $2.86 a barrel over WTI during the week end session.
The World crude oil price index curves continued to slid down on Friday, logged in biggest weekly losses in more than nine months followed by registering seven consecutive days of losses during the week. Surging Delta cases in many of oil consuming nations reinforcing travel restrictions to cut-off spread, Drags on fuel demand. On the other hand, Supplies are increasing steadily from OPEC+ and U.S, weighing on oil complex. U.S drillers added more oil rigs during the last week.
I want to mention Dr.Gary's recent comments on oil price. He says that Oil prices are driven by inventory change, Demand supply forecast and demand for inventory. During the first 7 months, Brent has been traded above fair value due to lower demand supply forecast amid lower stocks and higher demand. He further mentioned that discount or premium to fail value depends on the demand for inventory that reflects the impact of macro factors, geopolitics and COVID etc and is manifested to market sentiment.
Today, Asian markets opened in green, giving back some of the last week's losses.
Good day to all.
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