By Srinivas Chowdary Sunkara // petrobazaar // 31st Oct 2019.
Brent oil futures went down by 98 cents to $60.61 and WTI oil futures dropped by 48 cents to $55.06 a barrel last night. In Shanghai, The crude oil main contract futures fell by 3.8 Yuan or 0.93% at 452.6 Yuan/barrel while MCX crude oil futures closed Rs.80 down to Rs.3880 yesterday. Brent premium to WTI narrowed down to $5.55.
The world benchmark crude futures curve demonstrated slight downward trend yesterday on selling pressure sparked by a report of mounting U.S crude inventories surpassing analysts expectation, added to fading optimism over the delay in resolving the trade irritants. In contrast, Draws in U.S product stocks tempered the bearish influence of the solid crude build. Fed rate cut in U.S added to lingering worries over stumbling economy, concerned the market.
Turning to weekly reports, EIA reported that the U.S commercial crude stocks were piled up by 5.7 Mb amid higher imports while gasoline and distillates stocks were drawn by 3Mb and 1Mb respectively despite of ramp up in refinery output @87.7% of operable capacity last week. U.S crude oil production remained at 12.6Mbpd. Stocks at major delivery hubs, Cushing and Oklahoma rose for a fourth straight week, gaining 1.6Mb last week.
Today, Oil markets opened in greed during Asian hours and the it does not demonstrate any firm trend so far. I see oil markets are still in bearish mood. Good day.
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