By Srinivas Chowdary Sunkara // petrobazaar // 26th August, 2019.
Brent oil prices lost 58 cents to close at $59.34 and WTI oil prices dropped $1.18 to settle at $54.17 a barrel on Friday. In Shanghai, crude oil main contract futures dropped by 1.3 Yuan or 0.3% to 427.1 Yuan/barrel while MCX crude futures prices slumped Rs.153 to close at Rs.3863 on Friday. Brent premium to WTI widened to $5.17. Both the benchmarks closed the week above 1% low.
The World crude benchmark price index plunged after China announced new tariffs on US goods including crude oil as a retaliatory action to earlier US tariffs on Chinese goods. This move reignited the fears of recession. Turning to weekly numbers, US drillers dropped 16 active oil rigs during the last week. On the supply side, OPEC market share is at its lowest point in years. Jackson Hole Symposium face a political shocks and none of the central bankers seemed confident about how to fight. I doubt this annual symposium could direct the financial markets. I hear bearish bells are ringing across the market amid fears of uncertainty. Good day.
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