By Srinivas Chowdary Sunkara // petrobazaar // 10th May, 2022.
Brent oil futures prices for July delivery shed $6.45 or 5.74 pct to $105.94 a barrel on London based ICE futures Europe exchange while WTI oil June futures prices tumbled $6.68 or 6.09% to $103.09 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices went up 5 Yuan to 702.7Yuan/bbl where as MCX crude oil front month futures prices traded Rs.85 or 1.08 pct higher to Rs.7970 a barrel yesterday. Brent traded at a premium of $2.85 over WTI during the session.
The world crude oil price index curves turned down yesterday after both the benchmark prices demonstrated down side momentum along side of falling financial markets. The prolonging COVID lockdowns in China , Fed worries over world recession and Strong dollar shrugged off supply worries out of EU embargo on Russia oil. KSA lowered crude prices for Asia and Europe for June. Oil output in Russia rose in early May from April and production was stabilized after Western countries sanctions. On technical side, Traders absorbed much of initial shock from Russia invasion over Ukraine followed by sanctions threats. Fund managers remain weighted towards products especially diesel while Money managers and Hedge funds bought positions in petroleum futures and options last week. Turning to data, Monthly reports are due this week while API numbers are due later today. Today, Asian markets are trading in red, Adding to yesterday's losses. Markets are poised to downside momentum amid fears of economic slowdown. Monthly numbers and weekly numbers may spur some volatility in the market.
Good day to all.
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