By Srinivas Chowdary Sunkara // petrobazaar // 30th June, 2022.
Brent oil futures prices for August delivery shed $1.72 or 1.46 pct to close at $116.26 a barrel on London based ICE futures Europe exchange while WTI oil August futures prices fell down $1.98 or 1.77% to settle at $109.78 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices inched up 0.1 Yuan to 727.7 Yuan/bbl where as MCX crude oil front month futures traded Rs.61 or 0.69 pct lower to Rs.8772 a barrel yesterday. Brent premium over WTI widened to $6.48 a barrel during the session.
The world crude oil price index curves turned down yesterday on bearish sentiment buoyed by strong dollar and bearish weekly numbers from U.S. Both the benchmarks started traded down after a rally of three sessions during the week. Brent August contract set to expire today and most active Sep contract futures are trading up. Putting some light on weekly numbers, EIA said that U.S crude stocks were drawn by 2.8 Mbpd where as gasoline and distillates stocks were built up by 2.6Mbpd and 2.6 Mbpd respectively. Piling up U.S product stocks signaled destruction of demand across that weighed on oil prices. Increasing U.S domestic production numbers factored in. Fears of inflation outweighed tightening supplies in the market. On the supply side, OPEC+ monthly review meeting is in focus. Saudi and UAE are struggling to compensate losing Russian barrels due to lack of spare capacity. Supply tightening factor is prevailed in the market. Today, Asian markets opened in green. Weekly Rig numbers are due later today. Both the benchmarks are moving towards weekly gains.
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
