By Srinivas Chowdary Sunkara // petrobazaar // 12th May 2020.
Brent oil futures prices for July settlement climbed 73 cents or 2.46% to $30.36 and WTI June oil futures rose $1.17 or 4.85% to $25.31 a barrel today. In Shanghai, crude oil main contract futures dropped by 5.8 Yuan or -2.24% at 253.2 Yuan/barrel while MCX crude oil futures for May delivery is trading 4.39% up or Rs.81 at Rs.1928 at the time of reporting. Brent is trading at a premium of $5.05 over WTI during today's session.
The world crude oil prices indexes are continued upward momentum, boosted by unexpected announcement by Saudi to rein in another 1Mbpd in the month of June to help oil indexes to stabilize. Kuwait also announced 80000 bpd while UAE agreed for voluntary cuts of 100000 bpd in the month of June. The OPEC spearhead initiative will help to encourage others in the group to comply with the voluntary production cuts. On the other hand, The sudden and significant overnight move can be seen as proactive policy or just a reaction to weak demand. On the demand side, Analysts warned that the worst is behind the market in case of second wave of pandemic spurring renewed lock downs. In the present scenarios, bazaar is looking at weekly inventory data which will drive the price momentum. API data is awaited later today. Good day to all.
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