By Srinivas Chowdary Sunkara // petrobazaar // 28th June, 2019.
Brent oil prices edged 6 cents up to $66.55 and WTI prices inched 5 cents up to $59.43 a barrel last night. Shanghai crude oil main contract futures prices rose by 9 Yuan to 450.1 Yuan/barrel while MCX crude oil futures settled Rs.15 down to Rs.4114 yesterday. Both the global crude markets are trading steady ahead of G-20 and OPEC + meetings.
During the week, A massive U.S inventory drop of 12.8 Mb last week after Sep, 2016 caused the market to send the prices soaring despite of soft fundamentals. I fully agree with Mr.Martjn Rat comment that the physical disruption tend to be short lived if at all and the price spikes tend to be very short as well as the fundamentals will remain soft during the year and will continue into 2020.
Oil markets are currently focused on U.S-China meeting on Saturday, hoping that any positive outcome could ease trade tensions. OPEC + meeting is scheduled on July 1-2 to decide whether to extend supply cuts. Any negative news from these meetings will end the month high rally. Asian markets are opened flat today.
Good day and Happy week end.
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