By Srinivas Chowdary Sunkara // petrobazaar // 18th Dec, 2018.
Brent dropped 67 cents or 1.11 percentage to $59.61 and WTI slipped $1.32 or 2.58 pct to $49.88 yesterday. With reference to Genscape data, Cushing numbers came in higher than anticipated which pointed to the concern of more oil coming into market, weighed on oil prices yesterday. Increasing concerns on growth prospectus in China and Europe dampened the mood in oil markets. The correlation with financials came back, Encouraged sell of in oil markets in line with U.S and Europe stock markets.
To me, It seems that OPEC used its last card with cuts, to put off falling trust in oil prices. The effectiveness of the cuts depend upon how long Russians can stretch to pull the weight and on the assumption of U.S doesn't increase its production significantly during the period. Any way, Saudi is going to contribute largest chunk of the cuts to balance its economy. Now question is how low we have to go for enough production to stop to create the situation for new rise again. Asian markets opened in red today. Good day.
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