By Srinivas Chowdary Sunkara // petrobazaar // 31st Dec 2019.
Brent oil prices rose 28 cents or 0.04% to $68.44 and WTI oil prices ticked down 4 cents to $61.68 a barrel last night. In Shanghai, Crude oil main contract futures prices settled up by 2.8 Yuan or 0.58% at 489.3 Yuan/barrel while MCX crude futures closed Rs.15 down at Rs.4401 yesterday. Brent premium over WTI widened to $6.76 a barrel during the session.
The world crude oil price indexes moved up to the highest since Sep, 2017 during the yesterday's session. For the year, Brent gained 27% while U.S benchmark crude is up about 36% for the year 2019. Optimism surrounded by prospectus of trade deal along with upbeat data, Pushed benchmark futures prices up while middle tensions supported oil complex. On the data side, China's factory activity expanded again in December although market await for details. Investors are closely watching the events in middle east following the U.S airstrikes on Sunday. U.S invitation to China to sign the trade agreement is accepted. The trade agreement is very likely to spur some demand for oil. Money managers raised net long U.S crude futures and options positions in the week ending Dec 24.
To day morning, Asian markets are opened in red and it does not demonstrate any firm trend so far. API estimates are awaited later today. Oil fundamentals continue to present down side risk in 2019 following the prediction of OPEC+ group proposed cuts are not sufficient to avert large global inventory in the new year.
Good day to all and Happy new year.
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