By Srinivas Chowdary Sunkara // petrobazaar // 4th June, 2021.
Brent oil August futures prices fell 4 cents or 0.06% to settle at $71.31 a barrel on London based ICE futures Europe exchange. In U.S, WTI oil futures for July delivery inched down 2 cents or 0.03 pct to end at $68.81 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices edged up 9.2 Yuan to 448.1Yuan/bbl while MCX crude oil front month futures prices settled Rs.10 lower at Rs.5016 a barrel yesterday. Brent premium over WTI narrowed down to $2.5 a barrel during the session.
The world crude oil price index curves continued to move flat yesterday, After two days of gains that pushed oil prices to an year's high. Both benchmarks prices moved down moderately on mixed weekly stock report. Turning to weekly report, U.S crude oil stocks were drawn by 5.7Mbpd, Negating analysts expectation of 2.4Mbpd while gasoline and distillates stocks were piled up by 1.5Mbpd and 3.7Mbpd respectively. U.S crude production numbers were down by 0.2Mb, Net imports were boosted while exports were down. Crude oil throughput into refinery was up with no change in operable capacity while refinery percent utilisation was ramped up.
On the other hand, Brent front month futures crossed $70 mark this week for the first time in two years while the six-month calender spread also strengthened as the traders anticipate that OPEC+ will restrict supplies with the help from U.S shale producers to boost profit margins. Analysts says that consumption is also getting resumed from North America, Europe and Asia. Today, Asian markets opened down, Continuing yesterday's losses but it doesn't demonstrate any firm trend so far.
Good day to all.
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