By Srinivas Chowdary Sunkara // petrobazaar // 24th March 2020.
Brent futures prices for May settlement rose 95 cents of 3.51% to $27.98 on the London based ICE futures Europe exchange. West Texas Intermediate oil futures to be delivered in May climbed $1.07 or 4.58% to $24.43 a barrel on NYMEX. Shanghai crude oil futures jumped 18.7 Yuan or 7.75% to close at 260 Yuan/barrel where as MCX crude oil current month futures are trading Rs.97 high at Rs.1911 today. Brent is trading at a premium of $3.5 over WTI today.
Today morning, Both the crude benchmark futures curves continue to move up around 5% on support of U.S federal reserve steps to bolster the economy and hopes that the U.S government will reach a $2 trillion coronavirus aid package. This is giving boost to oil complex and nobody knows how far good mood will continue. The expected stimulus pushed the dollar under pressure and the weak dollar tend to support oil and other currencies. Analysts are in the opinion that the current epidemic left the oil demand in uncertain. The production cut deal fell apart in early march which left both the Saudi and Russia in market share and price war. Every body knows that both the countries are going to increase the oil supplies and cheap oil is going to flood into market which will weigh on oil prices further. API report is due later today.
Good day to all.
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