By Srinivas Chowdary Sunkara // petrobazaar // 28th August, 2021.
Brent oil futures prices for Sep delivery advanced $1.63 or 2.29 pct to settle at $72.7 a barrel on London based ICE futures Europe exchange. WTI oil Sep futures prices surged $1.32 or 1.96 % to close at $68.74 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices rose 5.5Yuan or 1.27 pct to 438.2Yuan/bbl while MCX crude oil front month futures prices closed Rs.18 higher at Rs.5064 a barrel yesterday. Brent premium over WTI widened to $3.96 a barrel during the session.
The world crude oil price index curves sloped up as both the benchmark prices traded up to register biggest weekly gains in over a year. Brent gained over 11 pct while U.S crude rose more than 10% during the week. Energy traders pushed oil prices up on anticipation of disruptions in output in the Gulf of Mexico and on growing expectations OPEC+ might resist raising output amid surging Delta virus cases across oil consuming nations. A weaker dollar also lent support to oil complex since a weaker dollar makes oil less expensive. Turning to weekly numbers, U.S drillers added another five oil rigs to 410 this week as per Baker Hughes weekly report. Market is looking at OPEC+, including Russia meet on Sep 1st to discuss its plan to open spigots to raise output by 400,000 bpd every month for the next several months. Markets are expected to continue rally amid expected loss of production due to Hurricane lda. Good day to all.
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