By Srinivas Chowdary Sunkara / petrobazaar// 10th Oct, 2018.
Brent prices up $1.09 or 1.3 pct to $85 a barrel and U.S crude futures advanced 67 cents with 0.9% increase to $74.96 per barrel yesterday. A massive downside trend was observed in the previous session on U.S considering waivers on Iran sanctions. Market reacted strongly on supply side news in yesterday's session. Bulls got an exultant news on Iran exports. Latest data showed that Iran exports shrank by 1.1Mbpd in Sep from 2.5Mbpd in April. Keep in mind that Saudi and Russia are in to expand market share. Expected shut down in Gulf of Mexico wells due to Hurricane Michael caused for the concern on possible missing barrels.
I heard that oil market speculators cut their long positions in Brent crude largely in the week ending on Oct, 2 from a more than four-month high. I agree with FIS mantra at the moment is 'when an unstoppable force meets a very moveable object – It is not going to end well'. So traders need to be careful that many of the supply side headlines are already priced in. This week, Monthly and weekly numbers may spur some volatility. Today Asian markets are opened down. Have a good day.
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