By Srinivas Chowdary Sunkara // petrobazaar // 26th Oct, 2021.
Brent oil futures prices for Dec delivery continued to add to pre-weekend gains by 46 cents or 0.54 pct to settle at $85.99 a barrel on London based ICE futures Europe exchange. WTI oil Dec futures prices moved flat to close at $83.76 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices rose 13 Yuan to 533.2Yuan/bbl while MCX crude oil front month futures prices went up Rs.35 or 0.56 pct to Rs.6314 a barrel yesterday. Brent premium over WTI widened to $2.23 a barrel during the session.
The world crude oil price index curves continued to demonstrate upside momentum as the prevailing bullish sentiment was supported by expected tightness in the near future. Both the benchmarks are trading at multi-year's high but rise in WTI profits was limited due to steep backwardation. Near month futures are trading at low to front month futures. On the technicals side, Hedge funds and money managers continued to buy petroleum futures and options during the week to Oct 19th since the traders are expecting that oil prices will climb further in near future. Most of the support came from creation of new bullish long positions that outnumbers the new bearish shorts, Indicating funds are bullish over oil prices. Increase in product demand from the world markets amid limited supply response from producer's group, Power crisis – switching to fuels and depleting physical stocks at record levels are the other fundamentally significant factors supporting oil prices. Today, Asian markets opened in green and it does not demonstrate any firm trend so far.
Good day to all.
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