By Srinivas Chowdary Sunkara // petrobazaar // 30th August, 2019.
Brent oil prices for Oct delivery moved 59 cents up to $61.08 and WTI oil prices to be delivered in Oct spiked 93 cents to $56.71 a barrel last night. Shanghai crude oil main contract futures rose 7.2Yuan or 1.7% to 430.4 Yuan/barrel while MCX crude futures closed Rs.32 up at Rs.4042 yesterday. Brent premium to WTI narrowed to $4.37 during yesterday's session.
The world oil price index trade up above 1% during yesterday's session. WTI prices surged over the fears that offshore crude producers may slow output if the storm passes into the Gulf of Mexico over the week end. Drawings in inventories at major US storage hubs after two new pipelines opened in the U.S Gulf Coast extended support to WTI index. Optimism over the outcome from scheduled meeting between two major economies in the coming week moved Brent price up. The fundamentals like economic and recession fears continued to prevail in the market.
Asian markets opened in red today and does not demonstrate any firm trend at the time of writing. Oil prices are heading towards a weekly gain of more than 4% and i expect the benchmark prices will be on the downside over profit booking after showing a upward momentum for last three sessions.
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