By Srinivas Chowdary Sunkara // petrobazaar // 10-4-18.
Crude oil gained on easing of tariff tensions
On Monday, Both the oil futures rebounded after a sharp weekly drop of 4.5% due to escalated trade tariff tensions between U.S and China suffered equity, spilled over to the oil market. Yesterday, Oil had a nice rally after following the equity markets on easing of tariff tensions as the U.S officials backpedalled on a trade war with China over week end. Weak dollar also supported oil prices. Strong demand and cartel stand on cuts keep markets supported.
Market neglected the negative sentiment of raising oil rigs will pump more oil into markets. Producers should note that in U.S, China and India, oil demand will become more sensitive to oil prices going forward.
Crude oil prices update
U.S crude futures for May delivery gained $1.36 with 2.19% change closed at $63.42 a barrel on Nymex where as Brent futures to be delivered in June closed up with $1.54 or 2.29% gain on London based ICE futures Europe exchange. On Tuesday Asian markets are opened with positive note and trading with 0.5% gains at the time of reporting.
U.S production numbers were built up with ref to last week report. I expect API may report crude stocks build in U.S which is scheduled to report today. Equity markets are trading in green and dollar sagged against its peers are the driving forces of crude oil. I expect crude will occupy a major space in commodity trade with high prices today. weekly reports and monthly oil reports along with Chinese inflation data are in cue for this week.
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