By Srinivas Chowdary Sunkara // petrobazaar // 2nd June, 2021.
Brent oil futures prices for August delivery jumped $1.71 or 2.46 pct to $71.17 a barrel on London based ICE Futures Europe exchange. U.S crude, WTI oil futures to be delivered in July advanced $2.33 or 3.51 pct to settle at $68.65 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices ended 11.2 Yuan higher at 440 Yuan/bbl while MCX crude oil front month futures prices soared Rs.63 to end at Rs.4938 a barrel yesterday. Brent premium over WTI narrowed down to $2.52 a barrel during the session.
The world crude oil price index curves were hovering at new high levels yesterday as prices are buoyed up by optimism over demand outlook across. Oil prices climbed more than 30% this year. On the supply side, OPEC+ meet ended with non-eventful as the market expected group's stand over Iranian barrels come back. The group decided to continue with agreed easing of cuts of 2.1Mbpd during May and June. The producer's club meet is scheduled on July 1st to discuss next month supply schedule. Turning to technicals, Hudge funds and other money managers cut their bullish long positions during the last week for the third week running. Portfolio managers are bullish on oil prices. Bullish long positions outnumber bearish short ones last week. Funds continued to anticipate upswing in oil prices, Underpinned by economic recovery, Ongoing supply cuts and Inventory draws across globe. Investors remained cautious as there was some profit taking on bullish longs at higher oil prices but not stretched. Today, Asian markets opened high, Continuing previous sessions gains but it doesnt demonstrate any firm trend so far. Weekly numbers may spur some volatility.
Good day to all.
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