By Srinivas Chowdary Sunkara // petrobazaar // 24th May, 2019.
Brent oil prices plummeted $3.23 to $67.76 and WTI futures prices nosedived by $3.51 or 5.71% to $57.91 a barrel last night. Shanghai crude oil main contract futures closed 13.6 yuan down to 493 Yuan/barrel while MCX crude futures lost Rs.240 to close at Rs.4036.
Both the crude benchmarks dropped steeply as the money and fund managers who built long positions, headed to exit since the other markets fell on gloomy economic indicators. Trader fears dampen the oil demand is the another factor of concern, adding to bearish mood. Geo-political factors are still sufficiently exist in the market to floor the oil prices. Following the huge surplus oil reported in the market, OPEC may prefer to continue with the existing cut pact in the second half of the year. Oil prices bounced back in Asian markets today as the market shifted focus to trade disputes and tightening markets apart from swelling inventories. Have a good day and week end.
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