By Srinivas Chowdary Sunkara // petrobazaar // 25th Oct, 2019.
Brent oil futures prices sagged up 50 cents to $61.67 and WTI oil futures prices edged 26 cents up at $56.23 a barrel last night. In Shanghai, Crude oil main contract futures rose by 3.7 Yuan or 0.83% to 448.4 Yuan/barrel while MCX Nov futures gained Rs.60 at Rs.4008 yesterday from previous close. Brent traded at a premium of $5.44 to WTI.
The world crude oil price index continued to go up yesterday as the surprise drop in US inventories and prospectus of supporting action by producer's club continued to prop up oil prices. Analysts are in opinion that minor supporting headlines prompted the exaggerated price response in the market. Upside momentum was also supported by the reports of possible tropical depression developing in the U.S Gulf coast region that could potentially halt the refinery activity. Turning to data side, Weekly rig numbers are due later today.
Today morning, Oil markets opened with a gap down during Asian hours and it does not demonstrate any firm trend so far. One needs to be cautious as there are more possibilities that shorts book profits at the week end.
Good day to all and have a great week end.
Disclaimer: Views and opinions expressed here are personal. This commentary is for information purposes only and not an offer or a solicitation to sell or buy any physical commodities or financial instruments. The views and analysis are based on reliable public information available at the time of writing. This report and its content cannot be copied, redistributed or reproduced in part or whole without the prior written permission of petrobazaar.com
