By Srinivas Chowdary Sunkara // petrobazaar // 6th August, 2019.
Brent oil Oct futures shrank $2.08 to $59.81 and WTI crude futures for Sep settlement fell $0.97 to $54.69 a barrel last night. Shanghai crude oil main contract futures rose by 1.5 Yuan or 0.35% to 433 Yuan/barrel while MCX crude futures closed Rs.12 up at Rs.3903 yesterday. Brent premium to WTI narrowed to $5.12, Its narrowest level since July, 2018.
The world crude markets plunged above 2% yesterday on renewed global growth concerns after Trump threatened to escalate trade war with China with fresh tariffs last week, Which may dent demand outlook for the current year and possibly next year in two major world economies. Financial markets are also hit by lingering trade war worries, which stoked a rally in the safe heaven assets like gold, bonds and currency. On the supply side, U.S exports surged by 2.6Mbpd to a monthly record of 3.16 Mbpd in June, pressed the US oil prices. Potential supply disruption in the Straight of Hormuz waters continued to lend support to oil prices. Turning to weekly numbers, API predictions are awaited later today, Which may spur some volatility in oil prices. Asian markets are opened with gap down today. Oil markets seems to continue downward evolution today.
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