By Srinivas Chowdary Sunkara // petrobazaar // 27th Feb 2020.
Brent oil futures for April delivery fell $1.52 to settle at $53.43 on London based ICE Futures Europe exchange while WTI oil futures prices to be delivered in April slid $1.17 to close at $48.73 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices dropped by 14.6 Yuan or 3.63% to close at 387.6 Yuan/barrel where as MCX current month futures prices dropped Rs.93 to Rs.3551 a barrel yesterday. Brent traded at a premium of $4.7 over WTI during the session.
The world oil benchmark price indexes were pushed down yesterday on escalation of fears over the reports of coronavirus pandemic out side China. Reports said that the infections were worsened in South Korea and Italy. Americans were warned to prepare for the disruptions in their daily lives due to spreading virus across. Authorities across the world are fighting to prevent the spread of virus, that was found in more than 30 countries. Turning to weekly inventory reports, EIA reported 500 thousand barrels rise in U.S crude stocks last week from the previous week, trouncing analysts expectation of 2.8 Mb of build. Drawings in product stocks and increase in gasoline production extended some support to oil complex. U.S crude production numbers were reported to be unchanged at 13Mbpd. On the supply side, Market is looking at OPEC+ scheduled gathering in Vienna. There is a possibility of postponement or convene by teleconference due to the spreading virus is Northern Italy and Austria. The secretary General Barkindo said that market needs to keep monitor and pray. Oil markets are desperately waiting for hints to tighten the oil spygots.
Today morning, Oil markets continued to trade in bearish territory. I see bear festival will continue.
Good day to all.
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