By Srinivas Chowdary Sunkara // Petrobazaar // 21st Nov, 2018.
Yesterday, Brent lost $4.26 or 6.38 pct to $62.53 and WTI front month futures went down $3.77 or 6.6 pct to $53.43 a barrel from its previous close. Brent has tumbled nearly 29 percent from recent high where as WTI shrank around 31 percent from four year's high last month. There is nothing significant to underline about yesterday's fall. A strong correlation of equity markets with oil complex is reiterated on the assumption of falling global equity markets signalling the slowing economic growth that is going to depress any growth in oil demand.
To me, It is proved that oil markets can't have rally without the support of financials. Oil markets really tested the support levels and closed remarkably different from opening. It is a sign of market having difficult time to decide which way to go from here. All eyes are on OPEC and non-OPEC meeting scheduled in the next month, Where Saudi will come out of a significant number of cut with the support of Russia. Till then, it is rhetoric lead. API friends helped the market yesterday by halting the slide after announcing an unexpected decline in U.S crude stocks. EIA will confirm the numbers and consensus is on build in stocks. Asian markets are trading in green at the time of reporting. Good day.
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