By Srinivas Chowdary Sunkara // petrobazaar // 29th Dec, 2020.
Brent oil prices for Feb delivery went down 43 cents or 0.84% to $50.86 a barrel on London based ICE futures Europe exchange. WTI oil crude futures to be delivered in February settled down 61 cents or 1.26% to $47.62 a barrel on NYMEX last night. In shanghai, Crude oil main contract futures prices slipped 0.6 Yuan to 306.6 Yuan/bbl while MCX crude oil current month futures prices marginally closed Rs.32 up to Rs.3583 a barrel yesterday. Brent premium over WTI widened to $3.24 a barrel during the session.
The world crude oil price indices moved down, Erasing earlier gains yesterday. Optimism over the U.S stimulus package and the start of European vaccination campaign were counteracted by weak demand outlook and prospectus of higher OPEC+ output. On the supply side, OPEC+ meeting is scheduled on Jan 4th. The producer group is expected to increase the output in the coming year. Russia is optimistic over the oil market recovery to pre-covid level in 2021, Indicating gradual recovery of crude production, Predicting demand growth in the new year. The real time onshore and offshore inventory numbers are also continuing to normalize, down 43% from peak levels. Analysts have calls for bull market in 2021. Markets are looking at weekly numbers, that may spur some volatility during the week. However, Oil markets are vulnerable to any virus related news. Today, Oil markets opened in green in Asia and it doesn't demonstrate any firm trend so far. I see markets are heading to sideways today.
Good day to all
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