By Srinivas Chowdary Sunkara // petrobazaar // 29th April ,2020.
Brent crude oil June futures prices rose $4 or 20% to $24.48 on London based ICE futures Europe exchange. WTI oil futures prices to be delivered in June climbed $3.2 or 26% to $15.54 a barrel at the time of reporting. In Shanghai, crude oil main contract futures prices rose by 13.7 Yuan or 5.96% at 243.7 Yuan/barrel while MCX crude oil front month contract futures are trading Rs.187 or 18.41% up at Rs.1188 today at the time of reporting. Brent is trading at a premium of $8.94 over WTI during today's session.
The world crude oil price indices showed upward momentum today after a report showed less than expected crude inventory build in U.S last week. The street is looking at positive indications of lowering the gap between supply and demand as some European countries and U.S cities moved to ease coronavirus lockdowns. The U.S officials at North Dakota and Oklahoma are looking at possibilities to cut production cuts that would add to already agreed 10 Mbpd cut by OPEC+ group that will come into effect from May 1st. Turning to weekly data, API reported 9.98Mb climb in U.S crude stocks during the last week while gasoline stock were drawn by 1.1Mb. The report also mentioned that distillates stocks rose by 5.5Mb. U.S government data is due to release later Wednesday. Consensus is on building crude inventories by 9.8Mb.
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