By Srinivas Chowdary Sunkara // petrobazaar // 29th January 2020.
Brent oil futures for March delivery rose 19 cents to $59.51 and U.S crude oil futures to be delivered in March edged up 34 cents to $53.48 a barrel last night. In Shanghai, crude oil main contract futures stood at 447.2 Yuan/barrel while MCX crude futures for Feb settlement closed Rs.25 up at Rs.3808 yesterday. Brent premium over WTI narrowed down to $6.03 a barrel from the previous session.
The world benchmark crude price indexes rebounded from last four day's steep fall following a major recovery of equity indexes from biggest selloff in about four months on worries over a coronavirus outbreak and its possible potential impact on global growth. Analysts see the yesterday's advancement in oil prices as a 'spill over' from the strong rebound in equity markets. On the other hand, Strong dollar restricted the buying enthusiasm in the energy complex. Turning to weekly data, API reportedly showed a build of 4.3Mb and 3.3Mb in U.S crude and gasoline stocks respectively while distillates stocks were reported to be declined last week. U.S government data will confirm the numbers later day. Consensus is on stock build. On the supply side, OPEC+ group is weighing options such as extending current oil output cuts until at least June amid the expected deeper reductions in oil demand in China that is fueled by 'Coronavirus'.
Today Morning, Oil price indexes continue slight upward trend during the Asian hours and it does not indicate any firm trend so far. Market participants are waiting for weekly numbers which will spur some volatility today. Good day to all.
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