By Srinivas Chowdary Sunkara // petrobazaar // 29th Sep, 2021.
Brent oil futures prices for Nov delivery closed 44 cents or 0.55 pct lower at $79.09 a barrel on London based ICE futures Europe exchange. WTI oil Nov futures edged down 16 cents or 0.21% to settle at $75.29 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices went up 13.1 Yuan to 507.6Yuan/bbl while MCX crude oil front month futures traded steady at Rs.5593 a barrel yesterday. Brent premium over WTI narrowed down to $3.8 during the session.
The world crude oil price index curves swung up in the early hours of yesterday's session, Later on turned down on prices retreating from rally. The prevailing bullish sentiment was buoyed up by traders expecting major oil-producing nations will decide to keep supplies tight during the scheduled next week OPEC+ meet, that pushed Brent to three year's high. It seems that investors locked in profits after seeing reasonable amount of margins, Pulled back the rally. Turning to weekly numbers, API estimated that U.S Crude, Gasoline and Distillates stocks are estimated to built up by 4.127Mbpd, 3,555Mbpd and 2,473Mbpd respectively last week. EIA will confirm numbers later today. Consensus is on build. On the technicals side, Hedge funds and other money managers bought an equivalent of just 12 Mb in the six most important petroleum futures and options contracts in the week to Sep.21 that supported this week rally. Analysts are in the opinion that prolonged disruption to oil production in the Gulf of Mexico and signs of energy shortage across the world have not been sufficient to encourage significant new petroleum buying from portfolio investors. Today, Asian markets opened in bearish mood, clawed back some of the previous sessions gains. EIA numbers may spur some volatility today.
Good day to all.
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