By Srinivas Chowdary Sunkara // petrobazaar // 23rd Dec, 2020.
Brent oil futures for Feb settlement fell 83 cents or 1.63% to $50.08 on London based ICE futures Europe exchange. WTI oil futures for Feb delivery went down 72 cents or 1.51% to close at $47.02 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures dived 13.6 Yuan or 4.4% to 295.2 Yuan/bbl while MCX crude oil current month futures prices settled Rs.45 or 1.28% down to Rs.3483 a barrel yesterday. Brent premium over WTI narrowed down to $3.06 a barrel during the session.
The world crude oil price indices keep rolling down hill, adding losses to the previous session yesterday on news of mutant variant of the corona virus in Britain concerns over demand recovery. Trump rejecting stimulus bill, API estimate of U.S stock build are the other factors that weighed on oil prices. On the supply side, Russia is in favor of increase of 0.5 mb/d supplies in Feb and in the opinion that the rise in supplies should not result in glut. Turning to weekly report, API predicted a build in U.S crude and distillates stocks by 2.7Mb and 1.03Mb while gasoline stocks were slipped by 0.224Mb. API also reported that Cushing stocks are estimated to be up by 0.341Mb.
Today, Both the benchmarks are trading in red during Asian hours. Market is waiting for EIA numbers later today. Weekly numbers may spur some volatility in the market today. I see market players are heading sidelines. Good day to all
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