By Srinivas Chowdary Sunkara // petrobazaar // 6th May, 2022.
Brent oil prices for July delivery rose 76 cents or 0.69 pct to settle at $110.9 a barrel on London based ICE futures Europe exchange while WTI oil June futures prices went up 45 cents or 0.42 pct to close at $108.26 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices traded 19.7 Yuan to 693.1 Yuan/bbl where as MCX crude oil front month futures prices little changed with Rs.20 or 0.24 pct to Rs.8253 a barrel yesterday. Brent premium over WTI widened to $2.64 a barrel during the yesterday's session.
The world crude oil price index curves moved up slightly yesterday. Both the benchmark prices continued upward momentum as the fears of supply tightness continue to prevail in the market as the EU laid out a plan to complete ban of Russia's energy. Strong dollar and weak financial markets keep check on oil prices. OPEC+ countries agreed to marginal increase of 4.32Mbpd of supply during June month. Markets are carefully watching EU movements if the Bloc with unanimous support from 27 countries sanction the Russian oil, Oil prices will be skyrocketed. Turning to data side, U.S distillates stocks have fallen to 14 year low as refineries unable to cater to the increasing demand from manufacturing and fright haulers. On the other side, If China stops fuels exports, Crude demand will fall heavily due to reduced refinery throughput that will weigh on crude prices. U.S drilling numbers are due later today. Today, Asian markets are trading in green zone, Adding to previous session's profits. Oil benchmarks are moving towards weekly gains.
Good day to all.
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