By Srinivas Chowdary Sunkara // petrobazaar // 25th July, 2019.
Brent oil prices edged up by 65 cents to $63.18 and WTI oil prices closed 89 cents lower at $55.88 a barrel last night. Shanghai crude oil main contract futures rose by 6.7 Yuan or 1.54% to 440.5 Yuan/barrel while MCX crude futures settled Rs.8 lower at Rs.3908 yesterday.
The global benchmark crude futures indexes have fallen by 1-1.5% despite of bullish weekly numbers and ongoing middle east tensions. Earlier in the session, front month Brent contract flipped to trade at a discount to a second month contract, known as contango, for the first time since March. Turning to weekly numbers, EIA reported that the crude and gasoline stocks were drawn by 10.8 and 0.2 Mbpd respectively while distillates stocks were reported to be piled up, more than estimated.
On the supply side, U.S crude production slipped by 700kbpd to 11.3Mbpd, Saudi increased exports to China and decreases to U.S. The demand outlook is darkened by the dim macro economics. Iran is tuning a 'negotiation' song after Britain gained initial support from France, Italy and Denmark for safe shipping though straight of Hormuz waters. Oil prices are ticked up today during Asian hours amid middle east tensions. I dont see any strong fundamental driving factors either ways. Good day.
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