By Srinivas Chowdary Sunkara // petrobazaar // 28th February 2020.
Brent oil price for April delivery dropped $1.25 to close at $52.18 on London based ICE Futures Europe Exchange while WTI oil futures to be delivered in April sank $1.64 to settle at $47.09 on NYMEX last night. In Shanghai, Crude futures trade data is unavailable and MCX current month crude futures closed Rs.156 lower at Rs.3395 yesterday. Brent premium over WTI slightly widened to $5.09 during the session.
The world crude oil price indexes are in freefall as the fresh reports of novel corona virus cases outside China stoked fears over stalling global economy. A slump in global equity markets also contributed to spurt in oil prices to news lows in an year time. Both the benchmark crude markers tumbled for the fifth straight day, set to clock weekly loss. The trading group is looking for a new salve in the form of deeper tightening of spigots from the producer's group. OPEC+ countries are scheduled to meet in Vienna on March 5th. The market sentiment is driven by that fact that the investors are expecting a prolonged period of over supply with the expected continue destruction of demand affected by the corona virus outbreak. Today morning, Oil markets opened in red and continue to dive. Bear festival is expected to continue.
Good day to all.
Disclaimer: Views and opinions expressed here are personal. This commentary is for information purposes only and not an offer or a solicitation to sell or buy any physical commodities or financial instruments. The views and analysis are based on reliable public information available at the time of writing. This report and its content cannot be copied, redistributed or reproduced in part or whole without the prior written permission of petrobazaar.com