By Srinivas Chowdary Sunkara // petrobazaar // 4th Feb 2020.
Brent oil futures prices for March delivery slumped $2.17 or 3.8% at $54.45 on the London based ICE futures Europe exchange while U.S crude oil futures to be delivered in March fell $1.45 to $50.12 a barrel after touching a session low of $49.91 on the New York Mercantile exchange. In Shanghai, crude oil main contract futures dropped by 36.2 Yuan or 8.01% at 415.5 Yuan/barrel while MCX crude oil futures prices settled down Rs.51 or 1.39% to Rs.3626 yesterday. Brent premium over WTI narrowed down to as little as $4.34 during the session
The World crude oil price indexes demonstrated a steep downward momentum yesterday to the lowest in more than a year. Both the benchmark futures prices dropped more precipitously on curtailing Chinese demand amid coronavirus outbreak, that sparked the potential supply cuts by producer's group, OPEC+. Analysts are in the opinion that the oil market needs specific assurances to balance the supply/demand equation that suggested not only extension of supply cuts, but even implement deeper cuts beyond March. On the other hand, The world's biggest oil importer, refiner Sinopec Corp advised its facilities to cut through put this month by about 600,000 bpd, the steepest in more than a decade amid the demand destruction in China. Turning to data, API numbers are due later today. Today morning, Oil markets opened mix during the Asian hours and it does not demonstrate any firm trend so far. Oil prices need specific clues to hit the floor. Good day to all.
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