Crude oil moved slightly upwards on Wednesday amid an escalation in the Ukraine war, along with the indication of growing Chinese crude imports. However, an increase in US crude oil stockpile maintained overall price gains as it indicates more supply than demand. Brent Crude futures were picked up by 9 cents, or 0.1 per cent to $73.40 per barrel. West Texas Intermediate (WTI) crude futures rose 14 cents or 0.2 per cent to $69.53 per barrel.
US crude oil stocks have risen by 4.75 million barrels in the week till November 15. However Gasoline inventories fell by 2.48 million barrels. Distillate stocks also fell, with the reduction of 688,000 barrels last week. The escalation of war between Russia and Ukraine, both being the major oil producers, have supported the crude oil prices. The reason for the escalating war are the U.S. ATACMS missiles used by Ukraine to strike on Russia and Russian President Vladimir Putin lowering the bar for a possible nuclear attack. This brings back the risk of supply disruption.
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Indications that China, being world’s biggest crude oil importer, may have increased oil purchases this month after also boosted oil prices. Weak imports by China so far this year have weighed on prices.Brent rates has slumped 20 per cent from April peak of more than $92 a barrel.
Mohammed Imran – Research Analyst, Sharekhan by BNP Paribas said, “The renewed geo-political concern over the weekend between Ukraine-Russia saw crude oil prices advancing in Asian markets but demand outlook remains weak. Chinese industrial output rose at 5.3% in October missing the expectation of 5.6%, while October crude imports declined 2% m/m and 9%y/y to 10.53 mbpd despite all the stimulus measures unleased in September and October. The US economic data looked promising with retail sales growing at 0.4%, but Fed speaks showed a cautious tone with comments like “not in hurry to lower rates is somewhat positive for USD.”
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Check latest Petrol and Diesel prices at your place on 20 November 2024
Guwahati: Petrol price: Rs 98.08 per litre, Diesel price: Rs 90.33 per litre
Chennai: Petrol price: Rs 100.80 per litre,
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