By Srinivas Chowdary Sunkara // petrobazaar // 9th Oct, 2020.
Brent oil futures prices for Nov delivery jumped $1.35 or 3.22% to $43.34 a barrel on London based ICE futures Europe exchange. U.S crude oil futures, WTI, Nov futures prices went up $1.24 or 3.1% to close at $41.19 on NYMEX last night. In India, MCX crude oil current month futures rose Rs.92 to Rs.3017 a barrel yesterday. Brent premium over WTI widened to $2.15 during the session.
The world crude oil benchmark price index curves moved up sharply yesterday on support from Delta shutdown and Norway supply losses. Though inventory builds, Increasing infections and gloomy demand outlook concerns the petroleum complex, Optimism over some U.S coronavirus relief aid kept support to oil complex. Both the benchmarks on track for their biggest weekly gains of more than 10%, The first rise in three weeks. Brent's five week calendar spread has weakened again to 62 cents contango and remains stuck in the 21st percentile for all trading days since 2010, Indicating traders see supplies remaining plentiful despite the Norway's strike. OPEC+ spearhead, KSA is considering canceling OPEC plans for an oil output hike early next year. Today, Oil prices are trading slightly lower levels from yesterday's prices.
Good day and happy week end to all.
Disclaimer: Views and opinions expressed here are personal. This commentary is for information purposes only and not an offer or a solicitation to sell or buy any physical commodities or financial instruments. The views and analysis are based on reliable public information available at the time of writing. This report and its content cannot be copied, redistributed or reproduced in part or whole without the prior written permission of petrobazaar.com