By Srinivas Chowdary Sunkara // petrobazaar // 25th March 2020.
Brent oil May futures prices closed 12 cents up at $27.15 on London based ICE Futures Europe exchange and WTI oil futures to be delivered in May rose 65 cents to settle at $24.01 a barrel on NYMEX last night. In Shanghai, crude oil main contract futures rose 18.7 Yuan or 7.75% to 260 Yuan/barrel where as MCX crude oil current month futures settled Rs.150 up to Rs.1962 a barrel yesterday. Brent traded at a premium of $3.14 over WTI during the session.
The world benchmark crude oil price indices continued to move up today morning along side broader equity indexes as the U.S government approved a massive aid package to stem the economic impact of the corona virus pandemic. On the other side, Demand for oil products continue to deteriorate particularly Jet fuel as the most of the countries announced shutdowns to contain virus. Oil prices have fallen around 45% during this month after OPEC+ group disagreement on production cut agreement and demand destruction followed by the corona virus pandemic across the world. Analysts are in the opinion that the pare back in the producer's group production and stabilization in virus episode are needed to lift the oil prices back to its pre-collapse prices. Turning to data, API reported that the U.S crude and product inventories fell trouncing the analysts expectation of build. EIA numbers are awaited later today. Good day to all.
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