MTECHTIPS;-Crude Oil Prices Mixed In Asia As Market Keeps An Eye on

MTECHTIPS;-Crude Oil Prices Mixed In Asia As Market Keeps An Eye on Sharp Brent Gains

MTECHTIPS-Crude oil prices were mixed on Tuesday with the market awaiting the US open after a long holiday weekend and digesting a view from Morgan Stanley(NYSE:MS) of $75 a barrel crude oil by the third quarter of 2018 as well as supply data from the US later this week. Initial estimates point to a 3.89 million barrels weekly decline in crude stocks and a 2.625 million barrels build in gasoline supplies. US West Texas Intermediate crude February contract rose 0.31% to $64.50 a barrel after overnight limited trading with the NYMEX exchange floor closed on Monday because of the Martin Luther King Day holiday. All electronic transactions will be booked with Tuesday’s trades for settlement. Elsewhere, Brent oil for March delivery on the ICE Futures Exchange in London fell 0.37% to $69.97 a barrel after crossing $70 overnight and earlier in Asia. “The current level of backwardation in oil futures curves is still a relatively recent phenomenon,” Morgan Stanley said in a note to clients. “If this persists for an extended period, we expect it will continue to attract inflows into the futures market. As these flows can be much larger than physical flows, this should drive oil futures prices higher during the course of this year. We raise our Brent forecast to $75/bbl by 3Q 18.” Overnight, crude oil prices were mixed on Monday, but they were still hovering near multi-year highs as overall optimism regarding the re balancing of the market continued to support the commodity

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