By Srinivas Chowdary Sunkara // petrobazaar // 24th Sep, 2019.
Brent oil prices gained 49 cents to $64.77 and WTI prices went 55 cents up to $58.64 a barrel last night. In Shanghai, crude oil main contract futures rose 2.4 Yuan or 0.52% to 466.5 Yuan/barrel while MCX crude oil futures closed Rs.27 down at Rs.4151 yesterday. Brent traded at a premium of $6.13 a barrel.
The world crude oil price index moved volatile yesterday as the traders skeptical on Saudi's production news. Brent curve moved up after wall street journal reported a delay in restoration of lost production on Sep 14th attack, However the global benchmark fall to day's low on Reuters report that the KSA could restore output by early next week. Markets seems to be hesitant to move either side without confirming the facts. The bullish news outweighed bearish news closed the session high at the end of the day. Prevailing ME tensions maintained the level of risk premium in prices. On the supply side, Majority of the oil is predicted to come from unconventional sources like US, Brazil, Iraq, Norway, UAE and Guyana between 2018 and 2024 as per IEA. Turning to weekly numbers, API numbers are due later today. Analysts projected US inventories will likely remain below the five year average in coming weeks as the country boosts exports to help fill the Saudi void.
Asian markets are opened in red today morning. The price index does not demonstrate any firm trend so far. I strongly feel that market is not in a mood to move higher without any firm clues. Good day.
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