By Srinivas Chowdary Sunkara // petrobazaar // 26th May, 2020.
Brent oil futures prices for July delivery rose 89 cents to trade at $36.42 on London based ICE futures exchange and WTI July futures prices climbed 64 cents to $34.36 on NYMEX at the time of reporting today. In Shanghai, crude oil main contract futures closed 6.5 Yuan or 2.42% up at 274.8 Yuan/barrel. MCX crude oil futures for June contract is trading 0.16% high at Rs.2573 a barrel in India. WTI is trading at a discount of $2.06 over Brent during the session.
The world crude oil price indexes demonstrated upward momentum today on improved supply and demand fundamentals. Bazaar seems to be growing confidence over the adherence rate of OPEC+ to cut supplies and prospective fuel demand across the world as coronavirus lockdown ease. The prices are buoyed by shale producers reducing rigs to all time low and Russia saying that its output had dropped to its agreed production cut levels. The group is scheduled to meet in early June to review the pact. On the other hand, Portfolio managers and fund managers remained the net buyers of crude focused on WTI in seven out of past eight weeks. NYMEX WTI short positions have fallen to only 44 million barrels, down from 108 million at the end of March and the lowest since the start of January. Turning to data, API numbers are awaited. Good day to all.
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