By Srinivas Chowdary Sunkara // petrobazaar // 25th August, 2021.
Brent oil futures prices for Sep delivery rose $2.3 or 3.35 pct to $71.05 a barrel on London based ICE futures Europe exchange. WTI oil futures prices to be delivered in Sep climbed $1.9 or 2.89% to $67.54 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices jumped 17.1 yuan to 422.6 Yuan/bbl while MCX crude oil front month futures prices went up Rs.134 to settle at Rs.5024 a barrel yesterday. Brent traded at a premium of $3.51 over WTI during the session.
The world crude oil price index curves continued to slope up yesterday after both the benchmark prices extended gains on brighter demand outlook. The up trend was supported with Maxico outages. U.S regulators issued their first full approval for a COVID-19 vaccine and Chinese apparent success in fighting the spread of Delta also boosted positive sentiment across the market. On the technicals side, Backwardation curves are steepening, Indicating healing.
Turning to weekly data, API expected U.S crude, Gasoline and distillates stocks are drawn by 1.622Mb, 0.985Mb and 0.245Mb respectively. EIA will confirm numbers later today. Consensus is on inventory decline that may boost oil prices further. On the supply side, Iran is planning to boost refined product exports. In India, Refinery throughput went up to record highs due to increased demand outlook. Today, Asian markets opened in bearish mood, drawings some of the yesterday's gains. It does not demonstrate firm trend so far.
Good day to all.
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