By Srinivas Chowdary Sunkara // petrobazaar // 27th August, 2019.
Brent oil prices fell 64 cents to $58.7 and WTI oil prices slipped 53 cents to $53.64 a barrel last night. In Shanghai, Crude oil main contract futures dropped by 3.4 Yuan or 0.8% at 422.1 Yuan/barrel where as MCX crude futures closed down with an insignificant change yesterday. Brent premium to WTI narrowed to $5.06 from previous session.
The world crude benchmark index shrank for the third session yesterday in a row. Oil prices are poised to volatile, largely driven by headlines related to tariffs and trade talks. Oil price index was weighed on by an estimated flood of oil amid the possibility of progress in a deal between US and Tehran. Turning to weekly data, US crude oil output is still holding up above 12Mbpd despite of continued drop in rig numbers over the past few months. Ongoing trade war between US and China offset the positive impact of drop in rig numbers. On the supply side, Oil market is facing a near term supply deficit despite of growing cracks in the global economy and stagnant oil demand. At the same time, The market is poised for a major surplus next year. Asian markets opened in green today. Good day.
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