By Srinivas Chowdary Sunkara // petrobazaar // 25th Nov 2019.
Brent oil futures for January delivery sank 58 cents to $63.39 and WTI oil futures to be delivered in January lost 81 cents to $57.77 a barrel on late week. In Shanghai, crude oil main contract futures rose by 9.8 Yuan or 2.18% to 458.9 Yuan/barrel while MCX crude oil futures settled Rs.22 down at Rs.4169 on Friday. Brent premium to WTI widened to $5.62 during the session.
The world oil price index curve showed a little downside momentum on Friday after notable recovery of prices during the last week after a report of OPEC + group likely to extend existing production cuts pact for three more months to mid 2020 when they meet over Dec 5-6. Though fundamentals indicated that the uncertainty over U.S-China trade talks over shadowed expected extension of supply cuts pact, Markets were not surprised to see a bit of selling pressure on late week. Turning to weekly data, Baker Hughes reported that U.S drillers further reduced another 3 rigs to 671 during the week. Analysts are in the opinion that the resistance level of approx $65/bbl seems to be very strong despite the various support levels prices have had. I would like to be happy to see that if oil price can close the year above $60/bbl.
Today morning, Oil indexes opened in red during Asian hours and it does not demonstrate any firm trend so far. Trade talks, production cuts pact and upcoming OPEC meet are the factors to spur some volatility in this week. Good day to all.
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