By Srinivas Chowdary Sunkara // petrobazaar // 2nd August, 2019.
Brent oil prices plunged $4.67 to $60.5 and WTI oil prices slumped $4.63 to $53.95 a barrel last night. Shanghai crude oil main contract futures dropped by 1.4 Yuan to 442.9 Yuan/barrel while MCX crude futures closed Rs.242 down at Rs.3790 yesterday.
The world oil prices crashed yesterday immediately after Trump surprised the market with an announcement of another round of tariffs on China. Although the Federal reserve reduced rates, The head of the U.S central bank indicated that there will not be any series of further cuts to boost economy, which concerned the markets. Turning to weekly numbers, After U.S stocks steady draw downs report, Market is looking at rig numbers today. On the supply side, OPEC oil output hit an eight year low in July as the Saudi deepened its voluntary cuts. U.S crude production stood at its highest above 12Mbpd. Analysts estimated that the production will increase faster than demand by 1 Mbpd in the new year. Oil prices rebounded today during the Asian hours after a plunge of above 7% yesterday. Bearish bells are ringing around the market amid the weak economic numbers, bleak demand outlook, over supply worries and escalation of trade war.
Good day and happy week end to all.
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