By Srinivas Chowdary Sunkara // petrobazaar // 26th July, 2022.
Brent oil futures for Sep delivery rose $1.95 or 1.89 pct to close at $105.15 a barrel on London based ICE futures Europe exchange while WTI oil Sep futures prices went up $2 or 2.11 pct to settle at $96.7 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices went down 20.3 Yuan to 639.6 Yuan/bbl where as MCX crude oil front month futures traded Rs.55 or 0.72% up to Rs.7713 a barrel yesterday. Brent premium over WTI touched all time high after 2019 during the session.
The world crude oil price index curves demonstrated upside momentum after both the benchmark futures traded up buoyed up by weaker dollar and strong equity markets. Traders are cautious on expectation of rising Federal reserve rates in turn limit the demand growth. Supply tightness is prevailed in the markets that continued to support oil complex. On the technical side, Portfolio investors purchased oil futures and options for the second week running as fund managers concluded that expectation of a recession and recent sell-off over done. Hedge funds and other money managers purchased the equivalent of 31 Mb in the six most important petroleum futures and options contracts in the week ending on July 19th. Buying was heavily weighted on new bullish positions rather than liquidation of existing bearish positions. Today, Asian markets opened in green, Adding to previous session gains on Russia reduction in natural gas supply to Europe. API numbers are due later today followed by EIA confirmations.
Good day to all.
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