By Srinivas Chowdary Sunkara // petrobazaar // 29th March, 2022.
Brent oil futures for May delivery slid $8.17 or 6.77 pct to settle at $112.48 a barrel on London based ICE futures Europe exchange while U.S crude, WTI futures prices to be delivered in May slumped $8.04 or 7.06 pct to close at $105.86 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices slipped 17.7 Yuan to 704.9 Yuan/bbl where as MCX crude oil front month futures prices traded lower to close down to Rs.8115 a barrel yesterday. Brent premium over WTI widened up to $6.62 a barrel yesterday.
The world crude oil price index curves turned down sharply yesterday after both the world benchmarks traded down as the Shanghai launched the lockdown to curb increasing virus cases prompted fears of demand destruction. OPEC+ group considering the modest increase in supplies also weighed on oil prices. Resumption of Russia-Ukraine peace talks along with the investors struck between two opposite risks of sanctions on Russia and Signs of recession compounded bearish sentiment in the market. Last week, Brent and WTI logged in weekly gains of above 12 pct and around 9% respectively. On the technical side, Investors positions in crude and refined products steadied last week after heavy sales in the previous two weeks. Elevated volatility in futures prices is making it increasingly expensive to maintain existing positions or initiate new ones as per reports. Today, Asian markets opened in red, adding to yesterday's losses. API numbers are due later today. Brent May contract set to expire this week. Keep watch OPEC+ outcome on supply numbers.
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