By Srinivas Chowdary Sunkara // petrobazaar // 11th Feb, 2021.
Brent oil futures prices for April delivery extended 38 cents gains to settle at $61.47 or 0.38% on London based ICE futures Europe exchange. U.S crude oil futures to be delivered in March settled 32 cents high at $58.68 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices dropped 7 Yuan to 371.2 Yuan/bbl while MCX crude oil current month futures prices closed Rs.37 higher at Rs.4284 a barrel yesterday. Brent premium over WTI widened moderately by $2.70 a barrel during the session.
The world crude oil price indexes continued to demonstrate upward momentum on prevailing strong fundamental factors across the market. Stock draws, extra supply cuts from KSA, Missing Iranian barrels and vaccine roll out that will improve demand outlook are the factors significantly driving the price rally. Turning to weekly data, EIA reported that U.S crude inventories were drawn 6.6Mb while gasoline stocks were up by 4.3Mb where as Distillates stocks were reported 1.7Mb down during the last week. A combination of refinery activity and lower imports resulted in fourth consecutive U.S stocks draw. Although crude numbers seems to be bullish, Undermined by increase in gasoline stocks. Javier said that demand looks stronger than expected, buoyed by y-on-y stronger numbers from China, India and Japan. Analysts cautioned that oil prices are moving too far ahead of fundamentals. Today, Asian markets opened down, capping yesterday's margins. It doesn't indicate any firm trend so far.
Good day to all.
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