:: Market News --- ID :: 19249
crude today // 09-11-2021
Hedge funds selling hits recent bullish rally

By Srinivas Chowdary Sunkara // petrobazaar // 9th Nov, 2021.

Brent oil futures prices for Jan delivery advanced 69 cents or 0.83 pct to close at $83.43 a barrel on London based ICE futures Europe exchange. WTI Dec futures prices rose 66 cents or 0.81% to settle at $81.93 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices went up 23.5 Yuan to 532Yuan/bbl while MCX crude oil front month futures prices traded Rs.13 down at Rs.6043 a barrel yesterday. Brent traded at a premium of $1.5 a barrel over WTI during the session. 

The world crude oil price index curves demonstrated upside momentum on bullish sentiment buoyed up by signs of economic growth and U.S weighing on options to address high prices apart from OPEC+ not to open taps for more oil. Both the benchmark futures traded up after logged in nearly 2 pct last week. On the supply side, KSA raised OSP  by $1.4 a barrel for its Asian customers, Reckons that next few weeks will be tight. U.S policy makers appears to be considering an SPR crude release to ease prices but analysts are in the opinion that the tool is useful only in short term. Turning to technicals, Hedge funds and other money managers sold the equivalent of 45Mb in the six most important petroleum-related futures and options contracts in the week to Nov 2nd. Portfolio managers were the net sellers across the petroleum complex. Portfolio managers are still bullish towards petroleum prices. Hedge funds  still think that prices are more likely to rise further rather than fall as per Mr. Kemp. Today, Asian markets opened in bearish mood, Taking out some some of yesterday's margins. 

Good day to all.

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