By Srinivas Chowdary Sunkara // petrobazaar // 24th Oct, 2019.
Brent oil prices rose $1.47 to $61.17 and WTI futures prices gained $1.81 to $55.97 a barrel last night. In Shanghai, Crude oil main contract futures closed 1.2 Yuan or 0.27% up at 443.6 Yuan/barrel while MCX crude oil Nov futures settled Rs.93 up at Rs.3948 yesterday. WTI futures traded at a discount of $5.2 to Brent.
The world oil price index gained momentum yesterday after U.S government data showed surprise drawings in U.S crude and product stocks, trouncing analysts expectation of swelling stocks for the week ending 18th Oct. Prospects of of rein in supply cuts by supplier's group and signal of comprehensive resolution to U.S – China trade war, added to bullish sentiment in the oil market. Turning to weekly data, U.S commercial crude inventories decreased by 1.7Mb while motor gasoline and distillates are drawn by 3.1Mb and 2.7Mb during the last week. Production numbers remained at 12.6 Mbpd while imports are trimmed, exports increased. Analysts are in the opinion that temporary factors like bullish weekly numbers has put some buyers in the market yesterday. Lingering demand worries amid stumbling economy will negate the gains and markets are expected to come back.
Today morning, Oil markets opened in red during Asian hours and it does not demonstrate any firm trend so far. Good day.
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