By Srinivas Chowdary Sunkara // petrobazaar // 8th August, 2019.
Brent oil prices slumped $2.59 to $56.35 and WTI oil prices tumbled $2.54 to $51.09 a barrel last night. Shanghai crude oil main contract futures dropped by 10.4 Yuan or 2.42% to 419.1 Yuan/barrel while MCX crude futures finished Rs.217 lower at Rs.3641 yesterday. Brent premium to WTI narrowed to $5.26 during the last session.
Yesterday, The world oil indexes opened in negative territory on trade war worries, extended losses after EIA reported a surprise build as against analysts expectation of drawings in U.S inventories. Oil markets halved the losses after a report that Saudi is seriously considering to put a floor under oil prices and that they believe the slump has been caused by economic fears, not by over supplies. Turning to weekly numbers, EIA proved API predictions wrong by reporting a build in U.S crude, gasoline and distillates by 2.4Mb, 4.4Mb and 1.5Mbpd. Market seems to be focused only on 'demand outlook', more than anything. Supply tensions exist in the Arabian gulf waters. Today, Asian markets opened with gap up. Market needs a strong driving factor to halt the bears celebrations. Good day.
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