By Srinivas Chowdary Sunkara // petrobazaar // 28th January, 2021.
Brent Oil prices for March delivery inched down 1 cent or 0.18% to close at $55.81 a barrel on London based ICE futures Europe exchange and WTI oil March futures rose 24 cents or 0.46% to close at $52.85 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices rose 7 Yuan to 335 Yuan/bbl while MCX crude oil current month futures prices climbed Rs.24 to settle at Rs.3874 a barrel yesterday. Brent premium over WTI narrowed down to $2.96 a barrel during the session.
The world crude oil price indices moved up yesterday as the oil markets were led by a significant draws in U.S stocks. Saudi cuts , OPEC+ compliance over 85% and insatiable demand from Asian led oil get consolidation. More than expected U.S crude stock draws countered persistent concerns about the pandemic concerns that sparked demand worries across the market. Turning to Weekly reports, EIA reported that the U.S total petroleum inventories (Crude, SPR, Oil products) declined by 11.707mb w/w to 1959.968 mb last week. Crude stocks sank by 9.9 Mb while gasoline and distillates stocks were piled up by 2.5M and 0.8M respectively during the last week. The large crude inventory draw was the result of a massive drop in net-imports of nearly 2mbpd w/w as the imports were down by 981kbpd w/w while exports were up by 1014kbpd w/w. On the supply side, Mr.Barkindo said that OPEC is cautiously optimist about economic rebound in 2021 and ready to take any action, if needed.
Today, Asian markets opened in Red and the index movement do not demonstrate any firm trend so far. Markets are looking at U.S Federal Reserve's two days policy meeting. I expect markets remain range bound today.
Good day to all.
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