By Srinivas Chowdary Sunkara // petrobazaar // 28th Dec, 2018.
Brent lost $2.31 to settle down at $52.16 and WTI shrank by $1.61 to close at $44.61 a barrel last night. Both the crude futures retreated from previous session rally to drop by around 4 pct on Thursday. Chinese crude futures rose by 26.1 yuan barrel while MCX futures slid by Rs.23 to settle down at Rs.3183 a barrel yesterday. The WTI – Brent spread was narrowed to $7.55 due to increase in demand.
As per the reports, Oil prices rallied along side of euphoria in equity market in the previous session. Later on markets started paring the earlier gains as the people started focusing on faltering economic growth and fears of supply glut. Turning to supply side, API reported surprise builds in U.S crude inventories for the week ending Dec, 21st but Consensus is on drawings which need to be confirmed by EIA on Friday. Russians are producing at high and Tehran is confident of selling its oil despite sanctions. Market is desperately waiting for clues from OPEC cuts schedule in the new year. Asian markets are opened up today. Good day.
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