By Srinivas Chowdary Sunkara // petrobazaar // 27th Nov 2019.
Brent oil futures prices for January delivery rose 62 cents to $64.27 and WTI oil futures prices to be delivered in January gained 40 cents to $58.41 a barrel last night. In Shanghai, Crude oil main contract futures have fallen by 1 Yuan or 0.22% at 460.2 Yuan/barrel while MCX crude futures settled Rs.19 up at Rs.4163 yesterday. Brent futures premium to WTI futures widened to $5.86 during the session.
The world oil price indexes moved up after headlines suggested the barest progress in U.S-China trade talks to agree on a first phase of comprehensive deal to erase trade irritants, might ease trade war and slowing conditions which in turn will boost the fuel demand. The prediction of drawings in stocks also lent some support to oil complex. On the supply side, The head of IEA said that OPEC will take wise decision for a 'very fragile' global economy amid the prediction of strong supplies from non-OPEC countries. Analysts suggest that the low oil prices is the key driver to boost demand in the long run. To keep in mind the larger interest of the oil and gas industry as a whole, The OPEC should keep aside the short term gains mind set that is purely based on high oil prices which may push consumer to cheaper alternative fuels. Turning to weekly data, API predicted build in crude inventories by 3.6Mb last week while consensus is on drawings. EIA weekly numbers are awaited later today.
Today morning, Oil prices opened down and it does not demonstrate any firm trend so far. I expect weekly numbers will spur volatility in the market. Good day to all.
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