By Srinivas Chowdary Sunkara // petrobazaar // 3rd June, 2019.
Brent futures prices slumped $2.38 to $64.49 and WTI futures fall by $3.09 to $53.5 a barrel on Friday while posting around 5% weekly loss. Shanghai crude futures dropped by 23.9 Yuan or 5.07% while MCX crude futures closed Rs.214 at Rs.3775 on Friday. Brent dropped around 11% and WTI slipped by around 16% during the May month, a biggest fall during the last six months.
Ramping up of U.S production levels, Growing U.S inventories and Intensifying trade war fears and faltering global demand growth are the key prevailing negative factors exist in the oil markets. Slump in financial markets and longs exit are the other bearish moving factors. On the other side of the coin, Market seems to ignore the fact that the OPEC+ supply cuts conformity is at 160% which should flour oil prices .
Asian markets are opened with gap down, deepened last week's downside momentum as the fresh trade worries stoked by Trump by threatening tariffs on Mexico. I do not see any correcting factor nearby as the markets are more vulnerable to existing bearish factors around. Good day.
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