By Srinivas Chowdary Sunkara // petrobazaar // 26th Sep, 2019.
Brent oil prices slipped 71 cents to $62.39 and WTI oil prices shed 80 cents to $56.49 a barrel last night. In Shanghai, crude oil main contract futures prices dropped by 11.6 Yuan or 2.5% at 452.6 Yuan/barrel while MCX crude futures prices settled Rs.82 lower to Rs.4001. U.S crude traded at a discount of $5.9 to Brent.
The world crude oil price index curve moved down by above 1% yesterday logging a second straight day of losses on bearish weekly numbers, Saudis restoration of missed barrels faster than expected post attacks and dollar rally which moves inversely with oil. Oil prices pared some of the losses after Trump said that the trade deal can be expected sooner than people think. Oil price index is back to the levels where it was prior to the drone attacks with in two weeks period which tells the fact that what the market is going through currently. Turning to weekly numbers, EIA reported an unexpected build in crude and gasoline stocks by 2.4Mb and 0.5Mb respectively while distillates inventories were drawn by 3Mb last week. U.S crude production was grew by 100K to 12.5Mbpd.
Today morning, Asian markets opened mix and the price curve does not demonstrate any firm trend so far. I feel that the market is in bearish mood, Any geopolitical and economy related clues may spur some volatility today. Good day.
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