By Srinivas Chowdary Sunkara // petrobazaar // 4th July, 2019.
Brent Sep futures prices rose $1.42 to $63.82 and WTI futures for August delivery ended $1.09 up to $57.34 a barrel last night. Shanghai crude oil main contract futures dived 15.3 Yuan or 3.45% to 427.7 Yuan/barrel while MCX crude futures settled Rs.11 down at Rs.3936 yesterday. Both the global crude markers gained modestly yesterday after a steep fall in the previous session.
EIA Weekly numbers disappointed the market as the 1.1Mb drawings were reported against the estimate of 3Mb, pared the gains. Strong equity markets and cut in rig numbers supported the oil prices. Markets are not happy with the global economic slowdown reports. Volumes are subdued ahead of the U.S holiday on Thursday.
Recent price rallies without fundamentals reminded me a character of 'escaped inmate' from Lunatic Asylum in my childhood story ' The Man who Saved Pumpelsdrop'. How great that a stranger drives an appetite for spending in an insignificant town which was in trough of depression. Asian markets are opened in green today. Oil prices are very likely to be stable at the week end. Good day.
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