By Srinivas Chowdary Sunkara // petrobazaar // 27th Dec, 2018.
Brent surged by $4 to settle up at $54.47 and WTI rose to $46.22, a $3.69 a barrel up, yesterday. Both the crude markers posted around 8% spike in a single trading session, rebounding partially from a steep losses. Market felt that the recent weakness is not fundamentally driven and crude is caught in wider market weakness after U.S government shut down, Equity markets melt down and exacerbated worries on U.S – China trade war.
2018 is a yo-yo market for crude. The year started with the positive momentum from OPEC allies cut deal, later on Iran sanctions worries and Venezuela supply related problems tightened the market fundamentals. Inflow of speculative funds exaggerated the price impact. Americans took the price advantage by pumping more oil into market. In June, OPEC + took U turn to ramp up production to secure its market share. Suddenly market found itself in a stage of surplus in 2H18, which pushed down Brent price by around $30 within 10 weeks after witnessing the peaks of $86. O.K., that is history. Asian markets are trading in red today. API numbers are awaited. Good day.
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