By Srinivas Chowdary Sunkara // petrobazaar // 26th Oct 2020.
Brent oil futures for Dec delivery are trading down above 2% at $40.59 a barrel on London based ICE futures Europe exchange and WTI oil Dec futures prices are slipped to above 2% at $38.99 a barrel on NYMEX today. In Shanghai, Crude oil main contract futures prices dropped 1.7 Yuan or -0.64% to close at 265.3 Yuan/barrel on Friday. MCX crude oil current month futures opened down today and trading at Rs.2886 a barrel.
The world crude oil price indexes demonstrate downside momentum today, extending last week's losses. Surge in virus cases that may halt oil demand is the main cause of concern across the market that pushed down oil prices. Both the benchmarks logged in weekly losses on Friday on the prospect of increased supply that hurt the sentiment although investors increased their net long positions as per the CFTC data that released on Friday. Turning to weekly reports, Baker Hughes reported increase in U.S oil rig numbers. Analysts are in the opinion that OPEC+ do not have a choice but to delay the increase of quotas in their next meeting to deal with the current situation. 4Q stock draws melting away with higher Libya, Iraq and Iran exports while crude runs are written down due to lower demand as per Dr.Gary. We may see another build in this week. Bears celebration is ahead.
Good day to all
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