By Srinivas Chowdary Sunkara // petrobazaar // 23rd Nov, 2021.
Brent oil futures prices for January delivery rose 81 cents or 1.03 pct to settle at $79.7 a barrel on London based ICE futures Europe exchange. WTI oil January futures prices inched up 65 cents or 0.85 pct to close at $76.75 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices edged down 18.8Yuan//bbl to 487.5Yuan/bbl while MCX crude oil front month futures prices closed Rs.41 higher at Rs.5714 a barrel yesterday. Brent premium over WTI widened to $2.95 a barrel during the session yesterday.
The world crude oil price index curves slightly moved up yesterday after a down side pressure in the early trading hours. Rising virus cases in Europe and potential release of SPR in major consuming nations may dent oil demand, Mounting oversupply concerns and strong dollar pressed oil prices. On the technical side, Oil prices lost momentum after heavy selling, Concentrated Brent (-12 Mb) and WTI(-34 Mb) last week by fund managers and other money managers as reported by ICE Futures Europe and the U.S commodity Futures Trading Commission. As per analysts, Speculation has become over heated by the start of October with most of the investors anticipating further big gains in prices even as prices were touching their highest levels for three years. On the other hand, SPR release should only have a short term effect. It reduces backwardation and have little effect on the back of the curve. API numbers are due later today. Today, Asian markets are trading red today, Clawing back some of yesterday's gains. Good day to all.
Disclaimer: Views and opinions expressed here are personal. This commentary is for information purposes only and not an offer or a solicitation to sell or buy any physical commodities or financial instruments. The views and analysis are based on reliable public information available at the time of writing. This report and its content cannot be copied, redistributed or reproduced in part or whole without the prior written permission of petrobazaar.com