By Srinivas Chowdary Sunkara // petrobazaar // 29th January, 2021.
Brent oil futures price for March delivery slipped 28 cents or 0.5% to $55.53 a barrel on London based ICE futures exchange. WTI oil futures prices to be delivered in March edged down 51 cents or 0.96 pct to $52.34 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices went down 1.7 Yuan to 333.3 Yuan/bbl while MCX crude oil current month futures prices settled down Rs.39 to Rs.3835 a barrel yesterday. Brent premium over WTI widened to $3.19 a barrel during the session.
The world crude oil price index curves moved down as the weaker dollar and significant U.S inventory build count not undermined the concerns that delays in vaccine roll outs and fresh travel curbs could hurt the demand outlook. The Brent front month contract is set to expire today, prompt backwardation continues to strengthen, may be due to funds shortage to roll in. The premium of the Brent front-month contract over the second month rose to its highest level since February 2020 for a fourth day in a row. On the supply side, Saudi Energy Minister said that they are the staunch believer in Paris agreement. He further said that Saudi's companies will do everything to achieve their targets. Turning to Weekly data, Baker Hughes will publish U.S rig numbers later today that may spur some volatility. Today, Asian markets opened mix and it doesn't demonstrate any firm trend so far. Both the benchmarks are trended to register marginal weekly gains.
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