By Srinivas Chowdary Sunkara // petrobazaar // 23rd Oct, 2021.
Brent oil Dec futures prices climbed 92 cents or 1.09 pct to settle at $85.53 a barrel on London based ICE futures Europe exchange. WTI oil futures prices to be delivered in Dec advanced $1.26 or 1.53% to close at $83.76 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices slipped 9.6 Yuan to 520.2 Yuan/bbl while MCX front month futures prices closed Rs.133 or 2.16 pct at Rs.6279 a barrel yesterday. Brent premium over WTI narrowed down at $1.77 during the session.
The world crude oil price index curves resumed to show upside momentum after falling curves followed by flat finish yesterday. Easing coal and gas prices that curbed demand due to spurred fuel-switching to diesel and fuel oil for power weighed on oil complex. This week opened in bearish mood on U.S and China weak factory numbers. Markets continued to pull support from bearish inventory numbers from API. EIA confirmation over U.S stock draws, Curbed downside rally and resumed upturn on expected record draws at U.S storage hub. Both the benchmarks logged in weekly gains amid concerns over demand outlook and expected supply tightness. Markets are in deep backwardation and cheaper to buy physical cargoes in the early month than later in month. Baker Hughes reported that U.S drillers took out 2 oil rigs to 443 in U.S.
Good day to all.
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