By Srinivas Chowdary Sunkara // petrobazaar // 24th Feb, 2021.
Brent oil futures prices for April delivery edged up 13 cents or 0.29% to $65.37 a barrel on London based ICE futures Europe exchange and WTI oil futures to be delivered in April inched up 18 cents or 0.29% to close at $61.67 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices rose 20 Yuan to settle at 412.9 Yuan/bbl while MCX crude oil current month contract prices settled Rs.56 higher at Rs.4491 a barrel yesterday. Brent premium narrowed down moderately at $3.7 a barrel over WTI during the session.
The world crude oil price indices continued to move up to more than year-long highs on vaccine news and removal of mobility restrictions over the coming months. Morgan Stanley estimated that oil market is undersupplied by 2.8 Mbpd this year. So far OPEC eased 650K out of the 2Mbpd agreed earlier. If OPEC+ decides to ease by the 2Mbpd agreed on, This will mean a possible return of 1.35 Mbpd from the group and then an additional 1Mbpd, Which is the Saudi voluntary cut. That's total of 2.35Mbpd, Amena quoted. Turning to weekly data , API reported that U.S crude , gasoline and distillates stocks were drawn by 5.372M, 3.427M and 3.905M respectively. EIA numbers are due later tonight. Consensus is on build in crude stocks. Brent prompt backwardation closes the day at highest since Jan, 2020, offering investors a massive roll yield . Asian markets opened down today, capping previous gains. Good day to all.
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