By Srinivas Chowdary Sunkara // petrobazaar // 9th January, 2019.
Brent rose $1.39 to $58.72 and WTI jumped by $1.26 to $49.78 a barrel on Tuesday. Oil prices continued to respond positively to the rumors on the hope of renewed trade talks between two giant economies. The fundamentals of the oil market are remained stayed the same even though the year has changed except agreed piecemeal cuts by OPEC +. So called 'Trusted' analysts are reducing their price predictions on the assumption of dampening oil demand from faltering economies.
Turning to fundamentals, Now, question is whether the OPEC alliance will be able to change the factors that brought the prices down from $82 when world need less oil. On the contrary, U.S shale producers are forced to innovate to drive down to breakeven costs and are reducing investments on richest wells amid low oil prices. The oil world needs to follow both the so called U.S capitalist model and OPEC's political will in determining the oil prices to go ahead. API reported a drop of just over 6Mb in U.S crude stocks and build in product stocks. EIA will confirm the numbers today and consensus is on a fall of 1.4Mb in crude supplies. Asian markets are opened positively. Good day.
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