By Srinivas Chowdary Sunkara // petrobazaar // 24th June, 2019.
Brent oil prices surged 75 cents up to $65.2 and WTI futures prices went 78 cents up to $57.4 on Friday. Shanghai crude oil main contract prices inched up 6.5 Yuan/barrel to 439.5 Yuan/barrel while MCX crude futures settled Rs.40 up at Rs.4017 last week. Brent futures spiked around 5% while WTI futures prices posted 10% weekly gains last week.
Escalation of middle east tensions, Softening of trade tensions between two major economies, Upcoming OPEC+ supply review meeting, Weak dollar and improved demand outlook amid possible rate cuts by U.S and European central banks are the significant bullish factors prevailing in the oil markets currently. Turning to weekly data, U.S rig operators added another rig and heading for decline for the seventh month in a row as the drillers changed focus on growth from supplies.
Middle East tensions are expected to support prices this week as the U.S will announce another round of significant sanctions on Iran. I see that the market is back as Hedge funds and money managers raised bullish wagers on U.S crude during the last week. Asian markets opened up today and expected to be in bulls zone. Good day.
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