By Srinivas Chowdary Sunkara // petrobazaar // 24th February 2020.
Brent oil futures prices dropped 81 cents or 1.3 pct to settle at $58.5 on the London based ICE Futures Europe exchange wile WTI oil futures lost around 50 cents or .75% to close at $53.38 on the NYMEX, late week. In China, Crude oil main contract futures prices dropped by 4.2 Yuan or 1.2% at 415.4 Yuan/barrel where as MCX crude oil current month futures prices settled Rs.45 down at Rs.3859 on Friday. Brent traded at a premium of $5.12 over WTI during the session.
On Friday, The global oil indexes inched down on renewed concerns over the faltering demand amid the stumbling economy continued to drag on oil prices, Affected by corona virus outbreak outside China. It is worth mentioning that the producers club seems to be not in hurry to go for deep cuts. Both the benchmark indexes registered weekly gains for the second consecutive week since the fears over the virus eased in the early week followed by the smaller than expected build in U.S crude stocks over shadowed the virus news. A drop in oil prices can also be attributed as the spill over from plunge in world equity markets. Turning to weekly data, Baker Hughes reported that the U.S drillers added another oil rig for the third straight week.
Today morning , Oil prices slumped nearly 4% during the Asian hours at the time of reporting as a slump in equity markets continued to roil over the oil markets amid the lingering worries over the increase in virus cases.
Good day to all.
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