Brent and WTI price trends by Srinivas Chowdary Sunkara as on 25th July, 2023.
Brent Oil futures for Sep delivery rose 20 cents to $82.94 a barrel while WTI oil Sep futures are trading 24 cents up to $78.98 a barrel on Tuesday morning during Asian hours. Both the benchmarks continue to rally for the third straight session today. Brent premium over WTI narrowed down to $4 a barrel during yesterday's session.
The bullish momentum buoyed up by supply tightening talks across the market supporting rally. The world's largest consumer, China's pledge to lift economy driving compounded prevailing bullish sentiment. Bearish data from U.S and Euro zone keep weighing on oil complex. On the technicals side, Money managers reduced long positions in Brent with an increase in WTI last week. Investors seem to prefer product markets and built positions in distillates that might have caused widening brent discount over WTI. Weekly data is awaited later today followed by EIA confirmations. Consensus is on falling U.S inventories that may spur some volatility in crude markets.
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