By Srinivas Chowdary Sunkara // petrobazaar // 28th Sep, 2019.
Brent oil futures prices for Nov delivery slipped 83 cents to $61.91 and WTI Nov futures prices have fallen 50 cents to $55.91 a barrel last night. In Shanghai, Crude oil main contract futures dropped by 0.8 Yuan or 0.18% to 448.5 Yuan/barrel while MCX crude futures closed Rs.54 down at Rs.3934 yesterday. Brent traded at a premium of $6 to WTI.
The world crude oil price indexes moved down yesterday to close the week above 2% lower after a week of upside momentum. A series of news that the Iran claimed US offering removal of sanctions and subsequent Trump denial pushed the market into bearish zone. Sell off in equity markets, Sparked by escalation of US-Sino trade tensions followed by media reports that US may limit its portfolio investments into China which could negatively impact the trade negotiations scheduled in the coming month, Also weighed on oil prices.
Turning to weekly numbers, Baker Hughes reported that the US drillers with drew 6 nos of oil rigs during the week. US oil and gas activities are slowing down as oil producers undergo some spending belt tightening. Oil production in US is seen growing, holding firm at 12.4 Mbpd for the last few weeks. It is the confirmation of the fact that the oil producers continue to see new ways to increase the operational profitability. Geopolitics continued to drive the oil market during the week.
Good day and happy week end.
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