By Srinivas Chowdary Sunkara // petrobazaar // 7th June, 2019.
Brent prices gained $1.04 to $61.67 and WTI prices settled 91 cents higher at $52.59 a barrel last night. Shanghai crude oil main contract futures settled 9 Yuan up to 416.2 Yuan/barrel while MCX crude futures closed Rs.26 down at Rs.3582 yesterday.
Yesterday, Both the global benchmarks rallied above 2% higher after a rally in stocks markets followed by a report that the U.S may postpone tariffs on Mexico amid ongoing talks. Oil markets are still stalled in bearish territory on slowing economy and growing U.S supplies. OPEC's current production is around 30Mbpd, A loss of 2Mbpd since the 4th quarter of 2018. Under the prevailing negative sentiment in the current market, The only way to support the prices above $50 is that OPEC should talk about further cuts in the second half. The scheduled meeting on 25th is postponed to July 4th. Today Asian markets are opened up and trading above 1% higher. Good day and happy week end to all.
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