By Srinivas Chowdary Sunkara // petrobazaar // 1st Nov 2019.
Brent oil prices for Dec delivery went 38 cents down to $60.23 and WTI Dec futures closed 88 cents down at $54.18 a barrel last night. In Shanghai, crude oil main contract futures dropped by 4.9 Yuan or 1.08% to 449.3 Yuan/barrel while MCX crude oil futures settled Rs.88 down at Rs.3853 yesterday. Brent premium to WTI widened to $6.05.
The world crude benchmark price index further sagged down yesterday on weak Chinese factory activity accompanied by reduced flows on a pipeline due to disruption caused by a leakage in keystone oil pipeline system. Delayed trade agreement also weighed on oil prices. On the supply and demand front, IEA estimated that oil market will likely to cope with another over supply next year, If demand continues to struggle amid uncertainties over stumbling global economy. Market kept an eye on upcoming OPEC+ meet as the consensus is growing among the experts and observers that the OPEC+ group need to cut more supplies to curb over supply building in 2020 and to preclude further fall in oil prices. Turning to weekly data, Rig numbers are due later today.
Asian markets are opened with gap up today and it do not demonstrate any firm trend so far. Oil prices are very likely to be flat today, considering the market mood at the time of writing.
Good day to all and happy week end.
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