By Srinivas Chowdary Sunkara // petrobazaar // 8th June 2020.
On Friday, Brent oil futures for August settlement closed $2.31 or 5.78% up at $42.3 on London based ICE futures Europe exchange. WTI July futures settled $2.14 or 5.72% up at $39.55 a barrel on NYMEX. In Shanghai, Crude oil main contract futures advanced 1.1 Yuan or .39% at 284.9 Yuan/barrel while MCX crude July futures jumped Rs.165 to Rs.2990 a barrel on Friday. Brent premium narrowed down to $2.75 to WTI during the Friday's session.
The world crude oil price indexes demonstrated upside momentum today morning during the Asian hours as the optimism over major oil producing countries agreed upon extension of 9.7Mbpd cuts till July end. In the early session, Brent collapsed from a high of $43.39 to below $42 as the bazaar focused on Libya restarting 400 kb/d output. On the other hand compliance with the agreement among OPEC members such as Iraq and Nigeria also remained an issue that may weigh on oil prices. Analysts are in the opinion that the markets are partly disappointed as the accord didn't extend beyond July. KSA raised its July OSP for Arab light to Asian by $6.1/bbl to $0.2/bbl. Turning to rig data, The no of operating U.S oil and natural rigs fell to a record low for a fifth week in a row in the week to June 5 according to Baker Hughes data. Today, Asian markets opened with a positive note and we will see the bulls celebration during this week.
Good day to all.
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